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.
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.
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