C.D. Cal. Approves $13 Million Settlement of Privacy Class Actions Against HSBC

The U.S. District Court for the Central District of California today granted final approval to the settlement of three class action lawsuits alleging that HSBC and its representatives violated California’s Invasion of Privacy Act by recording their credit-card-related telephone phone calls to HSBC credit card account holders without the account holders’ knowledge or consent.  HSBC will pay a total of $13 million to resolve the CIPA claims asserted in Fanning v. HSBC Card Services, Inc., Lindgren v. HSBC Card Services, and Medeiros v. HSBC Card Services, Inc. 

In granting final settlement approval, the District Court found that the settlement amount negotiated by Altshuler Berzon LLP and its co-counsel was considerably greater than in comparable CIPA call-recording cases, and that the results achieved were particularly noteworthy considering the substantial litigation risks that counsel overcame in litigating the cases.  The court also noted that the structure of the Plan of Allocation ensured that individual recoveries for participating class members would be determined by the strength of their claims, including the number of times they were called and whether the recordings were confirmed by existing bank records – in which case settlement payments would be automatic, without the class member having to file any claim form to obtain a recovery.

Additional information about the cases and the settlement is available at http://www.cacallrecordinglawsuit.com.