... At Least When Lots of Money is Involved.
Following a tradition, American shareholders of Lloyds Banking Group of Britain (NOT Lloyd's the insurance syndicates) has filed a class action because they claim a lot of damages.
They have filed suit in New York against Lloyds Bank itself, its former Chair of the Board, and its former CEO. (At this time, it is unknown whether the action has been filed in New York State Court or in Federal Court but that information will be provided when it becomes available here.)
The allegations apparently center on a reported "'reckless disregard for the truth'," based on the following allegations of failure to inform. Lloyds Bank bought HBOS, plc. HBOS was the holding company behind the Bank of Scotland. See Wikipedia, "HBOS". Lloyds Bank was high on the acquisition, until they were not.
Things turned sour for the Lloyds Bank shareholders allegedly when shortly after the acquisition of HBOS, Lloyds Bank had to give up a 43% stake to the government in return for an infusion of $26,400,000,000.00 or $26.4 Billion in Taxpayer Funds.
The suing shareholders of Lloyds Bank allegedly were not told of HBOS' decline in fortunes, so to speak, until they read about it in the newspapers, i.e., when a loss in the Billions was posted by the bank. Reuters Report, "U.S. Shareholders Sue Lloyds" (New York Times Online, January 2, 2012).
More to come, no doubt.
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