HSBC pays $1.6B to end 14-year legal battle

Global banking giant HSBC agreed to pay $1.6 billion to end a 14-year securities fraud case.

The settlement involves Household International, a mortgage and credit card company HSBC bought in 2002.

Legal action was first filed a few months before HSBC agreed to buy the U.S. company. Investors alleged Household and three former top executives made false and misleading statements about the business to inflate its stock price artificially, as well as used predatory lending practices to boost sales.

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