(AP) A division of HSBC has been ordered to pay about $2.46 billion in a class action lawsuit claiming it violated federal securities laws.
Lawyers for the plaintiffs said that the judgment, which includes $1.48 billion in damages and nearly $1 billion in prejudgment interest, was the biggest ever following a securities fraud class action trial.
HSBC Holdings PLC, Europe's biggest bank by market value, said in a statement on Friday that it will appeal.
The lawsuit named Household International, which is now HSBC Finance Corp., and former executives William Aldinger, David Schoenholz and Gary Gilmer. It claimed that the company fraudulently misled investors about its predatory lending practices, the quality of its loans and its financial accounting from March 23, 2001 through Oct. 11, 2002.
A jury in Chicago found in favor of the plaintiffs in May 2009.