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SCMP Reporter

HSBC Holdings, owner of Hong Kong's flagship bank and one of the richest companies in the world, has reached an out of court settlement with a secretary in a US$100 million (HK$772 million) sexual harassment case.

  Virginia Gallagher, who works as a secretary for New York-based HSBC Asset Management Americas Inc, filed the $100 million suit in the Supreme Court of the State of New York on November 9 last year.

  The suit named HSBC Asset Management Americas as a defendant. Also named as a defendant in the proceedings was David Paterson, managing director of HSBC Private Equity Management.

  Ms Gallagher - who has been described by US sources as 'mid-forties, attractive and well dressed' - alleged sexual harassment and sexual discrimination, infliction of emotional distress, gender violation, assault and battery and actions that could damage her career advancement at HSBC.

  New York's most famous sexual harassment law firm, Blodnick Abramowitz & Blodnick, claimed she had been damaged to the extent of $20 million for each of the five allegations.

  The suit was withdrawn on November 25 and further action discontinued once an out of court settlement was reached.

  The amount of the settlement could not be disclosed as both sides signed a confidentiality agreement as part of the discontinuation of proceedings.

   It is understood the group strongly denied the allegations and the sum involved in the settlement was a fraction of that being claimed in the original suit. A group spokesman in Hong Kong said: 'We in no way condone sexual harassment.'   It is understood HSBC decided to reach an out of court settlement rather than fight the allegations, as any investment prospectus issued by HSBC Private Equity Management would have to carry an announcement of pending litigation against directors of the firm, which the group felt may prejudice potential investors.

  Ms Gallagher could not be contacted in New York and office staff said she had not been in for a month.



HSBC settles US sex suit for $722m