HSBC Unit Hit With Record $2.4B Securities Fraud Judgment

Law360, New York (October 17, 2013, 5:20 PM EDT) -- An Illinois federal judge on Thursday ordered HSBC Holdings PLC unit Household International Inc. to pay $2.4 billion to investors over allegedly fraudulent lending practices and financial reporting, marking the largest judgment following a securities class action trial.

U.S. District Judge Ronald A. Guzman entered a final judgment in the case, which was originally filed in 2002 and reached a verdict in May 2009. The investors claim Household and three former top executives made misleading statements about the company’s lending practices, financial accounting and loan quality....
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