$2.46 billion payment ordered in 11-year old securities fraud case

Household International was found guilty of fraud four years ago

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.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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