HSBC Faces $1.6 Billion Fraud Suit Over Disney Film Financing

HSBC Holdings Plc was sued by hundreds of investors in a 1.3 billion-pound ($1.6 billion) lawsuit over tax breaks linked to Walt Disney Co. film financing.

The investors say in a London lawsuit that the bank is liable for false promises made by a client, Eclipse Partnerships, which touted opportunities to back films like “Pirates of the Caribbean 2” and “Confessions of a Shopaholic.” HSBC helped promote the scheme and may have received more than 25 million pounds in fees for its role, lawyers for the plaintiffs at Edwin Coe LLP said in a statement.

The lawsuit is the latest ...