Lloyds Banking defeats legal action over HBOS acquisition

Lloyds Banking Group PLC (LON:LLO) shareholders have lost a £385mln legal action over the purchase of rival HBOS in 2009.

The High Court of Justice rejected the injunction, which claimed shareholders were misled by Lloyds directors who recommended the deal without revealing key information about the parlous state of HBOS.

READ: Lloyds and Barclays get target hikes as Deutsche sees lower sector risks

At the height of the financial crisis, the bank was forced to accept a £20bn bailout from the government, which retained a stake until 2017.

“Our clients are deeply disappointed by today's judgment,” Damon Parker, founder and partner of law firm Harcus Parker, who represents 300 institutions as well as individual shareholders in the case, told the BBC.

“They wRead More – Source