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$2.46B Settlement in HSBC Securities Fraud Class Action Lawsuit

This is a settlement for the Securities/Stock Fraud lawsuit.

New York, NY: Hong Kong Bank of Canada (HSBC) has been ordered to pay $2.46 billion in settlement of a securities class action lawsuit brought by shareholders of a business formerly known as Household International, which was acquired by HSBC in 2003, for $14.2bn.

In writing the verdict, Judge Ronald A Guzman of Federal District Court in Chicago ordered HSBC, as well as three of Household International's former executives, to reimburse approximately $1.48bn in damages and $986.4m in prejudgment interest.

The securities fraud class action was filed in 2002. It alleged that Household International, which currently operates as the HSBC Finance Corporation, misled investors about its lending practices and the quality of its loans and its accounting between 1999 and 2002, and engaged in predatory lending practices.

HSBC plans to appeal the verdict.

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Published on Oct-21-13


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