KANSAS CITY, Mo. ( TheStreet) -- H&R Block (HRB) hit a new 52-week-low on Monday after it said it is suing HSBC's (HBC) U.S. arm if it does not offer refund anticipation loans as tax season approaches.
H&R Block filed a complaint on Friday in the U.S. District Court for the Eastern District of Missouri for injunctive relief against HSBC Bank USA, and certain affiliates, according to an Securities and Exchange Commission filing.
H&R Block wants to require HSBC to perform its "contractual obligations under the HSBC Retail Settlement Products Distribution Agreement, dated as of September 23, 2005, as amended," the filing said. Apparently the contractual obligations include offering the popular refund anticipation loans, according to Dow Jones.
If HSBC does not make the loans available in the next two months, H&R Block will not be able to offer the products, the article says.According to one analyst cited in the article, not offering the products would be a "material" hit to H&R Block's revenue and profitability. H&R Block shares plunged as much as 13% on Monday to $10.76 on strong trading volume of about 20 million shares, at last check.
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