A group of investors yesterday filed a claim for compensation from
The Lloyds Action Now activist group has spent years assembling the case, which argues that the true health of
No specific amount of compensation has been outlined in the claim, but it is argued that pounds 12bn of shareholder value was lost when
These are not the only court proceedings to be filed against one of the banks rescued by taxpayers during the crisis. Royal Bank of
Taxpayers own 81% of RBS and 24% of Lloyds. There is speculation that the government intends to dispose of the rest of its stake in Lloyds before the general election next year.
On the compensation claim, a spokesman for Lloyds said: "The group's position remains that we do not consider there to be any legal basis to these claims and we will robustly contest this legal action."
The Lloyds Action Now shareholders said they had named a number of former Lloyds directors in the claim, including the former chairman Sir
The shareholders argue that information about the emergency funding
There are 7,500 shareholders signed up to the lawsuit. An application has been made for a group litigation order to allow up to 800,000 more to join, and to open the door for major institutional investors that may have an interest. The case is being funded by unidentified specialist investors that support litigation claims.
Both Lloyds and RBS announced their first-half results last month. Lloyds profits more than halved, to pounds 863m, while RBS reported its highest first-half profits since its bailout, at pounds 2.6bn.
The taxpayers' stake in Lloyds - but speculation is rife that the government will dispose of it by next year
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