The lender reached a preliminary accord with over-the-counter investors that transacted directly with banks on a panel to determine Libor, according to legal filings with the US District Court in Manhattan.
HSBC has denied the claims but settled to avoid the costs and risks of litigation.
It is the fourth major bank to settle with OTC investors over Libor rigging.
Banks use Libor, or the London Interbank Offered Rate, to set rates on hundreds of trillions of dollars of credit card, mortgage, student loan and other transactions, and to determine the cost of borrowing from one another.
In October, HSBC, Citigroup and Deutsche Bank agreed to pay a combined US$132mln to settle a US class action brought by futures traders accusing them of manipulating Libor.
HSBC is also being investigated over a £134mln suspected tax evasion scheme created by the lender, The Times reported.
The newspaper said three former employees at the lender’s London office have been interviewed under caution for their role in devising a tax scheme for wealthy backers.