HSBC unit hit with $2.46bn judgement

HSBC building at night

A unit of HSBC was hit on Thursday with a record $2.46bn final judgment in a U.S. securities class action lawsuit against a business formerly known as Household International.

Reuters reports that the judgment by U.S. Judge Ronald Guzman in Chicago was the largest in a securities fraud class action that went to a trial, according to a statement from the Robbins Geller Rudman & Dowd law firm that represented investors.

Almost all securities fraud class action cases settle before going to a jury.

The suit was filed in 2002 and alleged Household International, its chief executive, chief financial officer and head of consumer lending made false and misleading statements that inflated the company's share price.

The plaintiffs also claimed that Household artificially boosted its share price by engaging in predatory lending and hid the quality of its loan portfolio.

To access the complete Reuters article hit the link below

HSBC hit with record $2.46 billion judgment in U.S. class action

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