On behalf of HSBC Holdings PLC's subsidiary Household Finance, Skadden (with co-counsel) reached a favorable $1.58 billion settlement on the morning of jury selection in a remanded retrial concerning the limited issues of loss causation and damages in a securities class action. The class action concerned alleged misrepresentations about whether the company engaged in predatory lending, re-aging of delinquent loans and certain accounting practices by its subsidiary Household International (now HSBC Finance). The settlement amount is substantially less than a previous partial judgment of $2.46 billion entered on a subset of claims arising from the original verdict in a trial conducted prior to Skadden's representation of the company and less than half of the $3.6 billion in claims that Household Finance faced as a result of that prior verdict.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates