HSBC has agreed to pay $1.58 billion to settle a class action lawsuit – now in its 14th year – regarding alleged misleading business practices during the subprime lending crisis. The settlement has not yet been approved by the courts, but is intended to include a pretax charge of $585 million in the second quarter to resolve litigation fees, representing 9% of the company’s estimated second quarter pretax profit.
This lawsuit began in 2002 when investors alleged HSBC had made misleading statements about its mortgage lending practices. In 2009, a federal jury in Chicago found HSBC guilty, but a 2013 judgement against the company was overturned by a higher court following appeal in 2015. This latest settlement offer is smaller than the one ordered in 2013, but may provide some relief to shareholders and investors who have been part of this class action suit for the past several years.
The decisions made by banks that contributed to the 2007 recession have had a profound impact on many American citizens. If you were defrauded, mislead, or otherwise unfairly treated by a bank during that that time – or at any time since – our Chicago consumer protection attorneys may be able to help you get compensation. The best way to learn if you have cause to file or join an existing suit is through a free one-on-one case evaluation. Please contact Markoff Leinberger online or by calling (312) 726-4162 to schedule your consultation today.