More On

Lloyds sued for misleading U.S. investors

Shareholders allege the bank’s former execs misled them about takeover of HBOS

Despite the fresh calendar on the wall, echoes of the 2008 financial crisis already are reverberating in the new year. Lloyds Banking Group is under fire from a putative class of American shareholders alleging the British bank and its executives misled them over the bailout of fellow financial services company HBOS in 2008.

Lloyds’ board of directors is accused in the lawsuit of making misleading statements about its takeover of HBOS, which the government orchestrated. At the time, Lloyds then-CEO Eric Daniels hailed the move as a “fantastic opportunity to create the U.K.’s leading financial services group and create value for both sets of shareholders.”

Join the Conversation

Advertisement. Closing in 15 seconds.