HSBC unit liable for more than $1.5bn in damages


The HSBC unit once known as Household International lost its bid to undo a 2009 securities fraud trial verdict and is liable for about $1.5bn in damages plus interest, a judge ruled.

Bloomberg reports that U.S. District Judge Ronald Guzman in Chicago yesterday denied the lender’s motions for a new trial or a decision in its favour and ordered plaintiffs’ lawyers to submit a proposed final judgement within five days.

'This court expressly determines that there is no just reason for delay and directs that a final judgement be entered' in favour on almost 11,000 claims, Guzman said in his ruling. He awarded almost $968m in prejudgement interest.

Household stockholders sued in 2002, alleging the company and three executives made misleading statements about its mortgage-lending practices. The lender had earlier agreed to pay $484m in fines to settle claims lodged by more than a dozen states.

In May 2009, a jury decided the company, former Chief Executive Officer William Aldinger and two other people made recklessly misleading comments 16 times, and in one instance involving Aldinger did so knowingly.

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HSBC Unit Judge Orders Judgement on $1.5 Billion in Claims

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