HSBC reaches $1.575 billion settlement in Household case

(Reuters) - A unit of HSBC Holdings Plc on Thursday said it will pay $1.575 billion to end a long-running securities fraud class action stemming from the acquisition of the Household International consumer finance business more than a decade ago.

HSBC Finance Corp said the settlement is subject to court approval and expected to result in a roughly $585 million pretax charge in the second quarter, including legal fees and expenses.

(Reporting by Jonathan Stempel in New York; Editing by Diane Craft)