HSBC Holdings Plc (HSBA), Europe’s largest bank by market value, plans to appeal a $2.46 billion U.S. court verdict against its former Household International unit.
A federal judge in Chicago yesterday ordered the bank to pay $1.48 billion in damages and $986 million in interest, according to court filings.
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 $484 million in fines to settle claims lodged by more than a dozen states.
“This was next legal step in an 11-year-old case,” HSBC spokesman Patrick Humphris said in an e-mailed statement. “We plan to appeal, and we believe we have a strong argument.”
Household was acquired by London-based HSBC in March 2003 for $15.5 billion. It is now known as HSBC Finance Corp.
The case is Lawrence E. Jaffe Pension Plan v. Household International Inc., 1:02-cv-05893, U.S. District Court, Northern District of Illinois (Chicago).
To contact the reporters on this story: Ambereen Choudhury in London at firstname.lastname@example.org
To contact the editor responsible for this story: Edward Evans at email@example.com