(Reuters) - A unit of British bank HSBC Holdings Plc (HSBA.L) was hit with a record $2.46 billion final judgment in a U.S. securities class action lawsuit against its unit, formerly known as Household International Inc.
The judgment by U.S. Judge Ronald Guzman in Chicago was the largest in a securities fraud class action that went to a trial, according to a statement from the Robbins Geller Rudman & Dowd law firm that represented investors. Most securities fraud cases settle.
The suit was filed in 2002 and alleged that Household International had violated securities laws by fraudulently misleading investors about the quality of its loans.
The lawsuit also named as defendants former top executives of Household.
HSBC is expected to appeal, according to the statement from the investors’ lawyers.
Reporting by Tom Hals in Wilmington, Delaware; Editing by Bernadette Baum