A PYMNTS Company

UK: Lloyds snubs £600m settlement bid as HBOS merger trial kicks off

By  |  October 16, 2017

Shareholders are gearing up for a long-awaited trial this week as they seek £600 million (US$794.8 million) in damages from Lloyds Banking Group and five former executives over claims they were misled during the acquisition of HBOS.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Opening submissions are set to be given at the Royal Courts of Justice on Wednesday, October 18, marking the start of a 14-week trial brought by the Lloyds/HBOS Shareholder Action Group.

    The group – which represents about 6,000 former Lloyds TSB shareholders – is seeking around £600 million (US$794.8 million) in damages in the case against Lloyds Banking Group, former chairman Sir Victor Blank, ex-chief executive Eric Daniels, former chief financial officer Tim Tookey, one-time director of retail banking Helen Weir, and ex-director of wholesale banking George Truett Tate.

    It is expected that each defendant will be cross-examined during the trial, which is expected to shed further light on the internal decisions that drove the bank’s controversial acquisition of HBOS.

    HBOS saddled Lloyds with lots of toxic assets stemming from risky bets made by HBOS on commercial property during the boom years.

    Lloyds was later forced to take a Government bailout worth £20.3 billion (US$26.9 billion), which has been blamed in part on the takeover.

    Full Content: Insider

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.