HSBC Holdings Plc, already facing a $2.46 billion judgment in an 11-year-old securities-fraud case, must keep litigating claims as a U.S. judge ordered more exchanges of evidence for a potential follow-up trial.
As HSBC Holdings Plc, the biggest European bank by market value, appeals the U.S. jury verdict that produced a $2.46 billion judgment, additional liabilities from the securities fraud case remain unresolved.
The HSBC Holdings Plc unit once known as Household International Inc. lost its bid to undo a 2009 securities fraud trial verdict and is liable for about $1.5 billion in damages plus interest, a judge ruled.
Goldman Sachs Group Inc. has signaled it will fight a U.S. lawsuit over subprime mortgage instruments the same way Bank of America Corp.’s Merrill Lynch unit and UBS AG have challenged similar claims -- by invoking the concept of caveat emptor: Latin for buyer beware.
The HSBC Holdings Plc unit once known as Household International Inc. is liable for about $1.5 billion in damages to shareholders who a Chicago federal court jury found in 2009 were misled by the company and three executives, a plaintiffs’ attorney said.
HSBC Holdings Plc, Europe’s biggest bank, slid in London and Hong Kong trading after profit missed analysts’ estimates and Chief Executive Officer Stuart Gulliver said fast-growing emerging markets are slowing.