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Lloyds braced as £600m damages trial set to start.

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

 

Kalyeena Makortoff PUBLISHED: 00:01, Tue, Oct 17, 2017 GETTY

Opening submissions are set to be given at the Royal Courts of Justice in London tomorrow , marking the start of a 14-week trial brought by the Lloyds/ HBOSShareholder Action Group.

Lloyds braced as £600m damages trial set to start | City & Business | Finance | Express.co.uk 17/10/2017 09:57

http://www.express.co.uk/finance/city/867308/

 

The group represents about 6,000 former Lloyds TSB shareholders. It is seeking around £600million 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.

 The trial may also ‘get to the bottom’ of the role played by the Bank of England

The group is seeking around £600million in damages

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

Lloyds was later forced to take a Government bailout worth £20.3billion,

 A spokesman for the action group said: “We will finally have our day in court after nearly 10 years. “The trial will show how much the director defendants knew about how bad HBOS was, that they concealed crucial information about HBOS’s financial position, and that they should not have recommended the deal on the basis that they did, nor should they have allowed the deal to go ahead on those terms.

 The spokesman said they hoped the trial would also “get to the bottom” of the role played by the UK Government, Bank of England, UK Listing Authority and the now-defunct Financial Services Authority

 

 

A spokesman for Lloyds said: “The group’s position remains that we do not consider there to be any merit to these claims.”

The bank is also facing a backlash over its response and redress over the HBOS Reading scandal, which saw

corrupt staff at the Berkshire branch embark on a £245million loans scam between 2003 and 2007.