NEW YORK, July 16, 2004 (PRIMEZONE) -- The law firms of Kirby McInerney & Squire, LLP and Levy Angstreich Finney Baldante, Rubenstein & Coren, P.C. announce that the U.S. Court of Appeals for the Seventh Circuit today affirmed certification of a nationwide class asserting federal Racketeer Influenced and Corrupt Organizations Act ("RICO") claims against H&R Block, Inc. (NYSE:HRB) and Household International, Inc. (successor to Beneficial Corporation), a subsidiary of HSBC Holdings PLC (NYSE:HBC). Plaintiff Carnegie alleges that defendants, among other things, deceived customers seeking tax refunds into obtaining high interest loans.
Writing for the Seventh Circuit panel, Judge Posner explained, "(t)he basic claim is that defendants lead the borrowers to believe that the tax preparer is their fiduciary, much as if they had hired a lawyer or accountant to prepare their tax returns, as affluent people do, whereas, unbeknownst to them, the tax preparer is engaged in self-dealing. This conduct is alleged to constitute a scheme to defraud in violation of the federal mail -- and wire-fraud statutes. Violations of those statutes are 'predicate offenses' that can form the basis of a RICO charge." Decision at 6.
In upholding the continued certification of the class, Judge Posner found "(t)here has been substantial compliance with the requirements of the rule (governing certification), and no more is required (citations omitted), especially in a case in which defendants were enthusiastic proponents of class treatment until their opportunistic change of heart." Decision at 12. In this, the Court was referring back to defendants' support of a sham settlement that plaintiff Carnegie opposed and the Seventh Circuit rejected two years ago. See Reynolds v. Beneficial National Bank, 288 F.3d 277 (7th Cir. 2002).
The nationwide plaintiff class is represented by Kirby McInerney & Squire, LLP and Levy Angstreich, et al. The firms specialize in complex litigation, including consumer and securities class actions. The firms' efforts on behalf of consumers and shareholders have resulted in recoveries totaling hundreds of millions of dollars, and their achievements and quality of service have been chronicled in published decisions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.
For more information, contact:
Joanne M. Cicala, Esq.
Roger W. Kirby, Esq.
Peter S. Linden, Esq.
KIRBY MCINERNEY & SQUIRE, LLP
830 Third Avenue
New York, New York 10022
Telephone: (212) 371-6600
Toll Free: (888) 529-4787
Facsimile: (212) 751-2540
E-Mail jcicala@kmslaw.com
Or
Steven Angstreich, Esq.
Michael Coren, Esq.
Carolyn Lindheim, Esq.
LEVY ANGSTREICH FINNEY
BALDANTE, RUBENSTEIN & COREN, P.C.
1616 Walnut Street, 5th Floor
Philadelphia, Pa 19103
Telephone: (215) 735-1616
Facsimile: (215) 545-2642
E-Mail sangstreich@levyangstreich.com