HSBC to appeal $2.46 billion judgment

LONDON — HSBC Group said Friday that it would appeal yet again a $2.46 billion judgment in a long-running securities fraud lawsuit in the United States related to a consumer-loan and credit-card business that the British bank acquired more than a decade ago.

The shareholder lawsuit alleged that Household International, now known as the HSBC Finance Corp., misled investors about its lending practices, the quality of its loans. and its accounting between 1999 and 2002.

A federal jury in 2009 in Chicago found partially in favor of the shareholders, but HSBC and the other defendants have repeatedly challenged that verdict.


In a decision issued Thursday, Judge Ronald A. Guzman of US District Court in Chicago ordered HSBC, as well as three of Household International’s former executives, to pay about $1.48 billion in damages and $986.4 million in prejudgment interest. The defendants were ordered to pay interest while their challenge is heard.

“We plan to appeal and believe we have a strong argument,” Patrick Humphris, a spokesman for HSBC, said Friday.