HSBC share price (HSBA): US judge dismisses New York foreclosure lawsuit

on Apr 1, 2015
Updated: Oct 21, 2019
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A US judge has dismissed a lawsuit accusing HSBC Holdings Plc (LON:HSBA) of violating a New York law aimed at protecting homeowners from foreclosure. The law in question requires lenders and services who sue to foreclose in New York to file a request for judicial intervention, which entitles homeowners to settlement conferences within 60 days to negotiate loan modifications.

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The lawsuit against HSBC, filed in 2013by the New York attorney general Eric Schneiderman, alleged that the bank had violated the legislation by failing to file the necessary paperwork in hundreds of foreclosure cases. However, John Michalski of New York State Supreme Court in Buffalo ruled that there was no basis for the lawsuit. He said that the bank’s delay or failure in filing the required documentation did not qualify as an “illegal act”.
Predictably, HSBC welcomed the decision.Reuters quoted Rob Sherman, a spokesman for the bank,as saying:”We of course agree with the court’s decision to dismiss the case, and remain committed to ensuring that struggling homeowners are treated fairly.”
Meanwhile, Matt Mittenthal, a spokesman for the state official, said that despite the ruling, “Attorney General Schneiderman will continue to fight for families struggling to recover from the housing crisis”. Mittenthal also said that the office had not decided whether to appeal.
In today’s trading, HSBC shares were up one percent at 579.60p, as of 10:18BST. The stock has fallen 4.7 percent since the start of the year. The firm’s market capitalisation currently stands at £111.3 billion.
As of 27 March, 2015, the consensus forecast amongst 33 polled investment analysts covering HSBC has it that investors should hold their position in the company. This stance has been maintained since 26 November, 2014, when the sentiment of investment analysts deteriorated from “outperform”.
As of 13:20 BST, Wednesday, 01 April, HSBC Holdings plc share price is 578.00p.

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