Lloyds Bank lose legal battle over HBOS merger

Lloyds Bank shareholders have lost a multi-million-pound legal battle against the bank over its purchase of HBOS in 2009.

5,803 former Lloyds TSB shareholders had claimed that they were “mugged” over the deal, as the acquisition was suffering from a wide array of bad mortgages and that the full state of the financials were not released.

Lloyds was then forced to accept a £20bn state bailout from the government, who owned a state in the bank until 2017.

The shareholders 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.

Lloyds TSB shareholders were seeking losses of between £200m and £650m but insisted they had “in fact suffered no loss as a result of the matters they allege”.

After the decision was handed down, a Lloyds Banking Group spokeswoman said: “The group welcomes the court’s decision. Throughout this process, the group has sought to act in the interests of our shareholders as a whole.”