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Form 8-K HSBC Finance Corp For: Jun 16

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June 16, 2016 5:01 PM EDT

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 16, 2016
__________________________________

Commission File Number 001-08198

HSBC FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 
86-1052062
(State of incorporation)
 
(I.R.S. Employer Identification No.)
1421 West Shure Drive, Arlington Heights, Illinois
 
60004
(Address of principal executive offices)
 
(Zip Code)

(224) 880-7000
Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 


HSBC Finance Corporation


Item 8.01. Other Events.

HSBC Finance Corporation (HSBC Finance) today announced a resolution to a 14-year shareholder class action based on events that took place prior to HSBC’s acquisition of Household International Inc. in 2003. HSBC Finance agreed to pay US$1.575bn to settle all claims in Jaffe v. Household International. The settlement is subject to court approval and is expected to result in a pretax charge to HSBC Finance of approximately US$585 million, including legal fees and expenses, in the second quarter of 2016.

 A copy of the press release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits
Exhibit No.
 
Description
99.1
 
Press release dated June16, 2016.



2

HSBC Finance Corporation


Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:    June 16, 2016
HSBC FINANCE CORPORATION
 
 
 
By:
 
/s/ MICHAEL A. REEVES
 
 
Michael A. Reeves
 
 
Executive Vice President and
 
 
Chief Financial Officer




3

HSBC Finance Corporation


Exhibit Index
 
 
Exhibit No.
 
Description
99.1
 
Press release dated June 16, 2016.


4


EXHIBIT 99.1



HSBC FINANCE CORP. REACHES
AGREEMENT TO RESOLVE
14-YEAR SHAREHOLDER CLASS ACTION
 
New York - June 16, 2016 - HSBC Finance Corporation (HSBC Finance) today announced a resolution to a 14-year shareholder class action based on events that took place prior to HSBC’s acquisition of Household International Inc. in 2003.

Having previously disclosed in public filings a potential exposure of up to US$3.6bn, HSBC Finance agreed to pay US$1.575bn to settle all claims in Jaffe v. Household International.

The case was filed in 2002, and a jury ruled for the plaintiffs in a 2009 trial. In May 2015, the US Court of Appeals for the Seventh Circuit reversed a partial final judgment against Household International Inc., the predecessor entity to HSBC Finance, and remanded the case for a new trial on loss causation and damages.

The settlement is subject to court approval and is expected to result in a pretax charge to HSBC Finance of approximately US$585m, including legal fees and expenses, in the second quarter of 2016.


Investor enquiries to:
 
 
Nick Turnor
+44 (0) 20 7992 5501


Media enquiries to:
 
 
Rob Sherman
+1 212 525 6901



Forward-looking statements:
 
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results and other financial conditions may differ materially from those included in these statements due to a variety of factors including those contained in HSBC Finance Corporation’s filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of HSBC Finance Corporation’s 2015 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this release.

Note to editors:





HSBC Finance Corporation, through its subsidiaries, owns and services a portfolio of residential real estate loans. HSBC Finance Corporation is a subsidiary of HSBC North America Holdings Inc.

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