TORONTO, Sept. 21, 2016 /CNW/ - Investigation Counsel P.C., a Toronto law firm specializing in civil fraud and investor class actions, wishes to announce an important update about an ongoing class action in Ontario against HSBC Holdings plc (LSE: HSBA.L, NYSE: HSBC.N, and HKE:0005.HK).
The proceeding, Yip v. HSBC Holdings et al., Court File No. CV-14-507953-00CP, has been brought on behalf of all investors who purchased shares or American Depositary Receipts ("ADRs") of HSBC Holdings between July 31, 2006 and July 11, 2012 (the "Class Period").
The action arises from HSBC's alleged longstanding and systemic compliance, control, and ethical failures, specifically its violations of applicable anti-money laundering ("AML") and anti-terrorist financing ("ATF") legislation and its alleged participation in schemes to manipulate benchmark interest rates Libor and Euribor. These AML and ATF-related violations allegedly had serious implications for the bank's Canadian operations, which used and relied on HSBCs inadequate compliance and risk management systems, controls, policies, and practices.
It is alleged that during the Class Period HSBC never disclosed these failures and misled investors by representing it had properly designed and effective internal controls and comprehensive risk management systems, policies, and practices across its global operations, including in Canada, and by touting its disciplined, ethical culture of risk management and adherence to a Code of Ethics, Group Values and Business Principles, and certain external codes of conduct.
The plaintiff alleges the truth about HSBC's longstanding and systemic compliance failures was at least partially revealed in July 2012 through media reports, a U.S. Senate Subcommittee investigation addressing the bank's role in money laundering and terrorist financing, and the release of two thousand pages of internal HSBC documents. Following the release of this information, there was a significant decline in HSBC's share price, resulting in substantial financial harm to its shareholders. The action seeks damages of $20 billion on behalf of the investor class members.
The plaintiff has served HSBC with a motion record in support of certifying the action as a class proceeding and for leave to pursue statutory claims for secondary market misrepresentation under Part XXIII.1 of the Ontario Securities Act.
Investors who bought HSBC shares or ADRs between July 31, 2006 and July 11, 2012 are urged to contact Investigation Counsel P.C. for further information about this class action.
SOURCE Investigation Counsel PC
For further information: Inquiries can be directed to (416) 637-3152 or [email protected]