The shareholders argued they would not have backed the deal if they had been given the right information.
Almost 6,000 Lloyds shareholders have failed in a multi-million-pound legal challenge against the bank’s takeover of HBOS.
The shareholders had claimed they were “mugged” when Lloyds recommended the deal in 2009 without disclosing the true financial state of HBOS.
They argued that if they had been given essential financial details they would not have backed the deal and that they had lost money as a result.
As the scale of HBOS’s loan losses emerged after the merger, British taxpayers were forced to pump in more than £20bn to keep the combined entity afloat.
During the hearing at the High Court in London, a lawyer for the shareholders said the directors had recommended the “disastrous” acquisition but, based on the information they had, no reasonable director would have done so.
Lloyds TSB shareholders claim they were “mugged” when Lloyds took over the lender.
Credits: Story, Sky News. Photo: Sky News