Lloyds sued by US investors for HBOS compensation

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US shareholders in Lloyds at the time of its takeover of HBOS have launched lawsuits against the bank, its former chairman, Sir Victor Blank, and ex-chief executive Eric Daniels.

They are seeking compensation through the US courts for the disastrous deal, the Daily Mail reports.  Investors claim Lloyds and its top management team failed to disclose the Bank of England had secretly supplied £25bn of emergency funds to keep HBOS afloat, or that the US Federal Reserve had given a further $11bn. They argue shareholders did not know HBOS was technically insolvent at the time of the takeover and were not fully informed about its finances when purchasing American Depositary Receipts in Lloyds. Adrian Lithgow, a spokesman for the Lloyds Action Now campaign which h...

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