Three of the country's largest pension schemes are in talks to join a lawsuit against Lloyds TSB directors for allegedly misleading investors over the Halifax Bank of Scotland (HBOS) merger.
Shareholder group Lloyds Action Now (LAN) is close to filing a case in the High Court against the Lloyds directors who chaired the bank at the time of the HBOS takeover in 2008. LAN claimed the directors misled Lloyds shareholders and neglected their fiduciary duty by not disclosing information about HBOS' financial state. The group argued the directors knew HBOS was being supported by £25bn of Emergency Liquidity Assistance from the Bank of England and $11bn from the US Federal Reserve to keep it afloat, but did not reveal this to shareholders who voted in favour of the takeover. ...
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