Lloyds Bank Shareholder Action

The High Court has made a Group Litigation Order (GLO) in relation to the Group Action to be pursued by certain shareholders in Lloyds TSB Plc ('Lloyds TSB') in respect of alleged losses suffered as a consequence of Lloyds TSB’s acquisition of HBOS Plc ('HBOS') in January 2009 and the subsequent recapitalisation of the merged entity.

Harcus Sinclair UK Limited, acting on behalf of a group of former shareholders in Lloyds TSB, has recently issued proceedings in the High Court against Sir Victor Blank, Eric Daniels, Timothy Tookey, Helen Weir, George Truett Tate and Lloyds Banking Group plc. All the named individuals were formerly directors of Lloyds TSB, which changed its name to Lloyds Banking Group after its acquisition of HBOS.

The Action Group alleges that the named directors of Lloyds TSB breached fiduciary and other duties owed directly to shareholders when advising them that the acquisition of HBOS and the connected Government recapitalisation of Lloyds Banking Group were in their best interests, and in procuring shareholders’ approval of the transactions on the basis of misleading information and the concealment of the true financial position of HBOS.

The Action Group therefore claims that the defendants are liable for the losses suffered by Lloyds TSB shareholders through the dilution of their shareholdings as a result of the issuing of shares to HBOS shareholders and to the Treasury. The Action Group calculates that the total losses suffered were in the sum of approximately £6 billion.

A GLO is an order by which the Court manages the claims of large numbers of claimants. Harcus Sinclair UK Limited are appointed Lead Solicitors to the Group Action, to manage the conduct of the litigation including the setting up of a Register of claimants.

Individual shareholders who wish to be added to the Register of claims are urged to come forward as soon as possible, as delay may prejudice the right of a potential claimant to make a claim. Only shareholders who claim may be entitled to compensation. HSL has placed Court-sanctioned advertisements in a number of national and regional newspapers to that effect.

Further details are available online at  www.lloydscase.com.

We asked shareholders who were interested in making a claim to sign up on our website at www.lloydscase.com no later than 10 November 2014.  That deadline has now passed. Individuals who wish to take part can still register their interest on our website (until 19 December 2014) but we cannot guarantee that they will be able to take part in the case.

For further information, please contact Harcus Sinclair UK Limited at lloydscase@harcus-sinclair.ltd.uk or 020 7539 2915.

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