Lloyds and former execs set for October court date with 6,000 shareholders over HBOS deal

William Turvill
Follow William
Lloyds TSB Merges With HBOS
Lloyds agreed a deal to buy HBOS in 2008 (Source: Getty)

Around 6,000 shareholders are taking Lloyds and its former executives to court in October.

The Lloyds/HBOS Shareholder Action group, comprising former Lloyds TSB investors, are suing the bank for between £300m and £350m.

Read more: Competition regulators clear Lloyds £1.9bn MBNA takeover

They are claiming that Lloyds failed to make shareholders aware of the “parlous state” of HBOS before it was acquired by the lender in 2008.

In addition to Lloyds Banking Group, five former directors – Sir Victor Blank, Eric Daniels, Timothy Tookey, Helen Weir and George Truett Tate – are named as defendants in the case.

The shareholder group, represented by law firm Harcus Sinclair UK, is made up of approximately 6,000 claimants, including 5,700 private shareholders and more than 300 institutional investors.

The group today confirmed the court case is due to begin on 2 October and is listed for 12 weeks.

Read more: Lloyds Banking Group profits double to £1.3bn sending shares higher

A spokesperson for the shareholder group said: “The trial will demonstrate not only that Lloyds TSB shareholders were made to pay for the parlous state of HBOS, but it will also highlight the inexcusable failure of the directors to share crucial information with their shareholders ahead of the deal going through and the implications of not having conducted appropriate due diligence to ensure that its own shareholders were not being compromised.”

A Lloyds spokesman said: “The group’s position remains that we do not consider there to be any merit to these claims and we will robustly contest this legal action.”

Related articles