Cheng v. HSBC – US Court of Appeals Overturns Denial Of Class Certification

On November 20, 2024, the US Court of Appeals for the Second Circuit overturned the lower court’s denial of class certification in Cheng v. HSBC Bank USA, N.A. (1:20-cv-0551)(EDNY).  The suit is brought on behalf of approximately 143,000 of the bank’s customers and alleges that HSBC failed to accrue interest on ACH deposits as promised.   Schlanger Law Group, LLP and co-counsel Terrell Marshall Law Group PLLC filed the suit in 2020.  The case, which had been dismissed, now returns to the District Court.   

The District Court had denied class certification on grounds that the named plaintiff’s particular, subjective understanding of the contract was a key issue in the case. 

The appellate court disagreed, ruling that “even if the contract is ambiguous” the named plaintiff’s  “subjective understanding is irrelevant to interpreting this uniform contract. (To read the Second Circuit’s decision, click here.) 

This ruling is an important not just to the HSBC customers that are part of the proposed class, but to consumers everywhere whose rights are set forth in form contracts, and who have no practical way of recovering their funds without class treatment of their claims.   

While the case isn’t over, this decision gives our client and other affected HSBC customers the opportunity to pursue justice.  

At Schlanger Law Group, we remain dedicated to standing up for consumers and helping them fight for fairness and accountability.  Class actions play a crucial role in addressing systemic misconduct, allowing individuals to come together and demand accountability even where their individual losses may be relatively small. 

If you’ve experienced unfair practices by a bank or financial institution, we’re here to help. Stay tuned for more updates on this case and other important consumer rights issues.