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Lloyds Can't Shake Troubled Past in Suit Over HBOS Takeover

Lloyds facing 600 million-pound lawsuit from 6,000 investors
Ex-CEO Eric Daniels, former chairman Victor Blank to testify

A Lloyds bank sign.
Photographer: Luke MacGregor/Bloomberg

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By Jeremy Hodges and Stefania Spezzati

October 17, 2017 at 4:00 AM UTC

Updated on

October 17, 2017 at 4:20 PM UTC

This article is for subscribers only.

Lloyds Banking Group Plc will be forced to relive a turbulent period in its 252-year history as former executives line up to testify at a London investor trial over its decision to take over the ailing HBOS Plc in 2009 at the height of the global financial crisis.

Around 6,000 retail and institutional investors sued for 600 million pounds ($795 million) claiming the bank and its executives deliberately misled them to win approval for the deal by not revealing the bank’s true financial position. Ex-Chief Executive Officer Eric Daniels and former chairman Victor Blank are among senior bankers who will testify at the trial, which starts Wednesday.