HSBC Affirm Autocallable Notes Investor Lawsuits

HSBC Affirm Autocallable Notes Results in Potential Significant Investor Risk

The White Law Group is investigating potential securities lawsuits involving HSBC Affirm Autocallable Notes.

Investors who purchased a structured product from HSBC linked to Affirm Holdings, Inc. may face significant downside risk depending on stock performance.

The structured note in question—HSBC’s Contingent Income Auto-Callable Securities linked to the Class A common stock of Affirm Holdings, Inc. (CUSIP: 40439K151)—was issued in October 2021 with a face value of $28,133,960. The note’s performance is tied to the share price of Affirm, and poor performance could substantially reduce or eliminate the final payout.

Details of the Investment: HSBC Affirm Autocallable

• Issue Date: October 6, 2021
• Linked Security: Affirm Holdings Inc. Class A Common Stock (NASDAQ: AFRM)
• Product Type: Contingent Income Auto-Callable Structured Note
• Face Value: $28,133,960
• Final Payout: Depends on Affirm stock price on October 1, 2024
• If price ? $58.93 (50% of initial price): $10 + final coupon ($0.425) per note
• If price < $58.93: $10 × (final share price ÷ $117.85) — leading to potential full loss
• Total Loss Potential: Up to 100% of principal. This means that an investor who put in
  $100,000 could receive as little as $0 if the stock declines significantly, or up to approximately $10,425 if the security is called early or the stock performs well.

Why Could the Investment Lose Value?

Autocallable structured products offer enhanced coupons but expose investors to losses if the underlying stock underperforms. In this case:

• The note automatically calls if AFRM stock closes ? $117.85 on any of the first 11 observation dates.
• If not called, and the stock closes < $58.93 on maturity, investors lose value
  dollar-for-dollar with the stock’s decline from the initial price.
• Coupons are contingent and only paid if the stock is above the threshold on
  determination dates.

Understanding the Risks HSBC Affirm Autocallable

Although marketed with quarterly coupon potential and limited downside, risks include:

• Market risk of the underlying stock (AFRM).
• Credit risk of HSBC USA Inc.
• No protection if stock breaches the downside threshold.
• Illiquidity and possible early call risk limiting gains.

Did Your Financial Advisor Recommend This Investment (HSBC Affirm Autocallable) ?

Brokerage firms have a duty to ensure that investment recommendations are suitable for each client, based on their risk tolerance, investment objectives, and overall financial profile. If your financial advisor recommended this Affirm-linked structured note without fully explaining the risks—or if it was an unsuitable recommendation for your needs—you may be able to recover your investment losses through FINRA arbitration.

FINRA Arbitration vs. Class Action

Many investors wonder if a class action lawsuit is better than pursuing an individual FINRA arbitration claim. Generally:

• If your losses exceed $100,000, individual arbitration may be more appropriate.
• Class actions are typically better suited for smaller, uniform claims.

Free Consultation

The White Law Group is investigating potential claims involving the HSBC Affirm Autocallable Notes and other autocallable products. If you have suffered losses and would like to speak with a securities attorney about your legal options, please call us at (888) 637-5510 for a free consultation.

You can also visit White Law Group for more information on our firm and ongoing investigations.