HSBC wins new trial in $2.46bn lawsuit

HSBC building sign

HSBC won a new trial in a decade-old securities fraud lawsuit that led to a $2.46bn judgment against the bank’s Household International unit.

Bloomberg News reports that a federal appeals court on Thursday set aside a 2009 verdict that three Household executives misled investors about its business practices.

While jurors made that initial determination after a month-long trial, it took four and a half more years to determine the proper amount of damages.

The three-judge appeals panel said the investors hadn’t shown the lenders shares drop wasn’t the result of other factors. The judges rejected the investors’ accounting for what it called 'non-fraud information' that could have affected the stock price. An expert witness had testified that that such information was insignificant.

To access the complete Bloomberg News article hit the link below:

HSBC Wins New Trial in $2.46 Billion Securities Fraud Suit

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