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HSBC Settles Securities Class Action Lawsuit for $1.575 Billion

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Santa Clara, CA: A massive $1.575 billion settlement has been reached in a securities class action lawsuit pending against a unit of HSBC Holdings Plc (HSBA.L). The 14-year old lawsuit stems from the Household International consumer finance business that the British bank bought in 2003 for $14.2 billion.

The settlement agreement effectively avoids a second trial, scheduled to begin last week in the Chicago.

The lawsuit (Jaffe et al v Household International Inc et al, U.S. District Court, Northern District of Illinois, No. 02-05893), was filed in 2002, by shareholders who alleged the company inflated its share price by concealing its poor lending practices and loan quality. The HSBL share price fell more than 50 percent between mid-2001 to October 2002, when the defendant agreed to pay $484 million to settle predatory lending claims brought by US state regulators.

By March 2009, HSBC shut down much of its US consumer finance business having taken tens of billions of dollars of write downs for bad loans associated with its subsidiary.

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Reader Comments

Posted by

on
I have a loan from them. I was told I could refinance it 6 months later if payments were made on time, but once 6 months came I was told this loan does not qualify to be refinanced so I am stuck with a high revolving interest loan. HSBC's loan practices are horrible. I would like to file a claim against this company. Now I have been sold to 2 different mortgage company's. They have added about 25,000.00 to the back of my loan,. To be told its not a Fannie Mae or Mac Loan and I can;t refinance with anyone. My loan is own by China HSBC and there is not a lot I can do but pay it all off. I have been being rip off for years. Paying monthly and my mortgage is not going down at all.

Posted by

on
I was a customer. I had my car financed through them in in 05.

Posted by

on
I have a loan from them. I was told I could refinance it 6 months later if payments were made on time, but once 6 months came I was told this loan does not qualify to be refinanced so I am stuck with a high revolving interest loan. HSBC's loan practices are horrible. I would like to file a claim against this company.

Posted by

on
I would like to be considered for this as well, they held a loan for me and treated me like crap till I paid them off

Posted by

on
Do you have a more narrowed down time frame as to when the claims will be paid out to borrowers??? Last I saw was first quarter ---

Posted by

on
The banke took money out of my account for the state of California without due process of law or a signed warrant by a judge. Then charged a $125 fee to assist in the theft. My cars were registered in the state I move to. They will not return my money and took it again this year even after they know of there mistake.

Posted by

on
WAS A CUSTOMER AND HAD PROBLEMS WITH PAYMENTS , FEE'S , INTEREST .

Posted by

on
WAS A CUSTOMER AND HAD PROBLEMS.

Posted by

on
I had an account with this company the interest was terrible and if u ever needed any customer service it was non existant.

Posted by

on
I had an account with HSBC. But it soon turn on a down hill spiral. I would like to request a form to complete as well. Thank you

Posted by

on
I worked for HSBC from 1993 until 1999. I held stocks with HSBC until 2008. I have chnge address therefore I did not receive any claim forms however I need to know if I am qualify for a settlement.

Posted by

on
i was a customer of this bank, just checking to see if i qualify

Posted by

on
I was employed by HSBC from 10/04/99 through 08/08/08 and I held/purchased stock through HSBC

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