A group of Lloyds shareholders suing directors over the 2008 HBOS takeover will use the LIBOR scandal as further proof they were misled into backing the deal.
Lloyds Action Now (LAN) has instructed its lawyers to incorporate the allegation that Lloyds TSB directors knew that HBOS's real interest rates were not being quoted at the time they recommended the merger. The group has been campaigning for the past three years for compensation for the 800,000 private shareholders who lost up to 90% of their investment as a result of the deal. It is in final negotiations with litigation funders to bring its claim for a total of £2bn compensation to court. LAN said the interest declaration by HBOS was "a deliberate attempt to hide the depth of the cris...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
