HSBC Agrees to Pay a Record $1.6bn to Settle Household Legal Fight

June 17, 2016
© 2016 Financial Times

HSBC has drawn a line under a long legal battle in the US by agreeing to pay a record $1.6bn to resolve a class action case stemming from its acquisition of Household International, the subprime group.

The bank said on Thursday that a US unit, HSBC Finance - formerly known as Household - would incur a pre-tax charge in the second quarter of about $585m, having agreed to pay $1.575bn to bring an end to a suit filed 14 years ago. According to the suit, Household and three of its senior executives made a series of misleading statements about lending practices and the state of the company’s books.

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© Financial Times 2016

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