$2.46 billion payment ordered in 11-year old securities fraud case
After 11 years, investors of subprime lender Household International Inc. are finally beginning to see some closure in a drawn-out fraud case.
October 18, 2013 at 07:53 AM
4 minute read
The original version of this story was published on Law.com
After 11 years, investors of subprime lender Household International Inc. are finally beginning to see some closure in a drawn-out fraud case. On Oct. 17, a U.S. district judge ordered Household International — now a part of HSBC Holdings Ltd. — to pay $2.46 billion in a class action lawsuit after a jury previously found the company guilty of securities fraud.
U.S. District Judge Ronald A. Guzman of the Northern District of Illinois Eastern Division ruled that the 10,092 claimants in the class action suit were owed $1.48 billion in damages. Household International and three former executives must also pay a total of $986 million in prejudgment interest.
“We were able to show the jury overwhelming evidence of the defendants' fraud and demonstrate how investors suffered as a result,” Mike Dowd, lead trial attorney for the plaintiffs, told The Wall Street Journal (WSJ).
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