Lloyds Sued by 220 Investors Over HBOS Takeover ‘Folly’

Lloyds Banking Group Plc was sued by 220 investors who said they were misled into supporting a 2008 takeover of HBOS Plc that prompted a 20 billion-pound ($34 billion) bailout from the U.K. government.

Britain’s biggest mortgage lender and its executives “knew or ought to have known that the acquisition of HBOS was not a good deal for shareholders of Lloyds and would not be in their best interests,” the investors said in legal documents from the U.K. claim, which was filed in London yesterday.