World Economy

HSBC Reaches $1.5b Settlement

HSBC Reaches $1.5b SettlementHSBC Reaches $1.5b Settlement

A unit of HSBC Holdings Plc said it will pay $1.575 billion to end a long-running securities fraud class action stemming from the acquisition of the Household International consumer finance business more than a decade ago, Reuters reported. HSBC Finance Corp said the settlement is subject to court approval and expected to result in a roughly $585 million pretax charge in the second quarter, including legal fees and expenses. Having previously disclosed in public filings a potential exposure of up to $3.6 billion, HSBC Finance agreed to pay the amount to settle all claims in Jaffe v. Household International.