* Medici says case rightly aims for fund, HSBC

* HSBC says will defend itself

By Boris Groendahl and Sylvia Westall

VIENNA, July 15 (Reuters) - Austria's Bank Medici said on Wednesday it was not targeted in a "clawback" lawsuit aimed at a fund it distributed, while the fund's custodian HSBC (HSBA.L: Quote, Profile, Research) said it would defend itself "vigorously".

The trustee hunting for assets linked to swindler Bernard Madoff's $65 billion Ponzi scheme on Tuesday sued for $578 million the Herald US fund, of which Medici was a distributor, and Herald's custodian, a unit of HSBC.[ID:nN14285996]

The case is the latest "clawback" lawsuit against a large Madoff investor. Court-appointed trustee Irving Picard is seeking money withdrawn from Madoff's operation for the benefit of Herald, mainly in the few months before his December arrest.

Medici said it was not affected by the case because it was only a distributor for Herald US. While Medici was also investment manager of the related fund Herald Lux, that fund is not targeted in Picard's action.

A lawyer for Bank Medici said it was right that the trustee went after HSBC and the fund itself, not Bank Medici.