WASHINGTON: HSBC Finance, an HSBC bank subsidiary, has agreed to pay more than $1.57 billion to settle a lawsuit over alleged misrepresentations regarding the bank’s predatory lending practices, HSBC said in a statement.
“HSBC Finance agreed to pay US $1.57 [billion] to settle all claims in Jaffe v. Household International,” the bank said on Thursday.
The case was filed in 2002, and a jury ruled for the plaintiffs in a 2009 trial.
In May 2015, a US appeals court reversed a partial final judgment against Household International Inc., the predecessor entity to HSBC Finance, and remanded the case for a new trial.
The settlement is subject to court approval and is expected to result in a pretax charge to HSBC Finance of approximately $585 million, including legal fees and expenses, in the second quarter of 2016, the statement noted.
