Household HSBC Watch

Kirby McInerney & Squire, LLP persuaded a U.S. Court of Appeals to reject a class action settlement for want of adequate legal representation. On remand, the district court appointed KMS as co-lead counsel for the plaintiffs, replacing prior class counsel, the ones whom the court found to be inadequate, and later the district court certified a nationwide class on plaintiff’s “Racketeer Influenced and Corrupt Organizations” Act (RICO) claims.

Carnegie vs. Household International, Inc. 220 F. Supp. 2d 542 (N.D. Ill. March 29, 2004). Block and Beneficial National Bank (now part of Household) are the defendants. The suit alleges that the effective annual interest rate on these loans frequently exceed 100%. Tax refunds comprise most or all of the taxpayers’ expected savings for that year.