New York State Supreme Court justice John Michalski said delays in HSBC's filing its paperwork related to the foreclosures did not qualify as an "illegal act" under the state law that Schneiderman said the bank violated, according to a copy of the decision reviewed by Reuters.
"The mere possibility" that HSBC might have violated the law "cannot serve as the basis" for the lawsuit, Michalski said.
Rob Sherman of the media relations team at HSBC told Reuters: "We of course agree with the court's decision to dismiss the case, and remain committed to ensuring that struggling homeowners are treated fairly."
The decision could not immediately be located in court records.
"The attorney general has not yet decided whether to appeal," Matt Mittenthal, a spokesman for the New York Attorney General, told Reuters.- Reuters
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