H & R Block Says SEC Is Probing Suit Filings

H&R; Block Inc. said the Securities and Exchange Commission was investigating the company’s disclosure of lawsuits stemming from its tax refund loans.

The SEC has begun a formal investigation into company filings before December 2002.

H&R; Block reported a $41.7-million charge in November 2002 to settle a Texas lawsuit over its loans, which advance money to clients while they await tax refunds. The firm had not disclosed the case in previous quarterly filings, and less than three weeks before the settlement it said in a statement that it expected no material effect from any pending litigation.

Clients have accused H&R; Block of charging interest rates of more than 100% on the loans and of not reveal- ing how the company made money from them in partnership with a bank. H&R; Block has denied any wrongdoing.