Almost 6,000 Lloyds shareholders who claim they were ‘mugged’ by bank’s takeover of HBOS during financial crisis suffer High Court defeat
Almost 6,000 Lloyds shareholders who claim they were ‘mugged’ by the bank’s takeover of HBOS at the height of the financial crisis have suffered a High Court defeat.
Some 20 months after the trial in London ended, a judge finally dismissed the £385m case brought by a group of 5,803 former Lloyds TSB shareholders who were hit by heavy losses.
The investors – many pensioners and Lloyds employees – claimed bosses recommended the deal in September 2008 without disclosing that HBOS was riddled with bad mortgage debt.
Signing off: Some 20 months after the trial in London ended, a judge finally dismissed the £385m case brought by a group of 5,803 former Lloyds TSB shareholders
They claim executives also failed to disclose that HBOS had received £25.65bn in emergency loans from the Bank of England. They have been seeking £385m to recoup their losses.
Lloyds had to be bailed out by taxpayers to the tune of £20.3 billion, with the ill-fated merger between Lloyds and HBOS completed in January 2009.
Shareholders have battled to make five Lloyds directors, including then-chairman Sir Victor Blank and former chief executive Eric Daniels, personally liable for their losses.
But The Hon. Mr Justice Norris announced that the ‘claim must be dismissed’. He was not convinced that ‘failures to provide sufficient information were in fact causative of any loss’.
Damon Parker, of law firm Harcus Parker, which represents investors, said they were ‘deeply disappointed’ and plan to appeal.