Pursuits
HSBC Unit Agrees to $1.58 Billion Settlement With Shareholders
- Household International investors reach accord after 14 years
- HSBC bought Household International for $15.5 billion in 2003
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HSBC Holdings Plc agreed to pay $1.58 billion to settle a 14-year-old shareholder lawsuit over allegations that executives of a U.S. subprime-lending business acquired by the bank misled investors.
The HSBC Finance unit will record a $585 million pretax charge in the second quarter to resolve the litigation, which the parent company inherited through its 2003 acquisition of Household International, the bank said Thursday in a statement. The settlement is subject to court approval.