Lloyds must release legal advice ahead of HBOS takeover hearing - judge
By Matt Scuffham
LONDON (Reuters) - Lloyds Banking Group (LLOY.L) must release details of legal advice it received in the run-up to its takeover of Halifax Bank of Scotland (HBOS) during the banking crisis in 2008, a judge in London's High Court of Justice ruled on Wednesday.
The ruling, handed down in a pre-case hearing, will be welcomed by investors who have joined forces to sue Britain's biggest retail bank and five of its former executives, alleging they were misled over the true financial position of HBOS at the time of the deal.
The Lloyds Shareholder Action Group, which is represented by law firm Harcus Sinclair, includes 5,700 private investors and 300 financial institutions such as pension funds and insurers. It is seeking damages of 350 million pounds, according to legal sources.
The investors say they were not told HBOS was receiving emergency support from the Bank of England and U.S. Federal Reserve and were unaware of a 10 billion pound loan made to HBOS by Lloyds to prevent it from collapsing.
Lloyds, which subsequently had to be bailed out with 20.5 billion pounds of taxpayer money, has said it doesn't consider there to be any legal basis to the claims.
The judge granted it permission to appeal against Wednesday's ruling. The case is expected to be heard next year.
(Reporting By Matt Scuffham, writing by Sinead Cruise, editing by Carolyn Cohn; Editing by Elaine Hardcastle)
