Lloyds Banking Group PLC (ADR) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations

If you purchased American Depositary Receipts (“ADR”) of Lloyds Banking Group PLC (NYSE:LYG) between October 1, 2008 and February 27, 2009, you have certain options and there are strict and short deadlines running. Deadline: Feb. 6, 2012. Those LYG ADR investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Lloyds Banking Group
Case Name: 
Lloyds Banking Group Shareholder Class Action 12/09/2011
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: LYG
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/09/2011
Class Period Begin: 
10/01/2008
Class Period End: 
02/27/2009
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
02/06/2012
Summary: 

San Diego, Dec. 9, 2011 (Shareholders Foundation) -- An investor in Lloyds Banking Group PLC (ADR) (Public, NYSE:LYG) filed a lawsuit in the U.S. District Court for the Southern District of New York against Lloyds Banking Group, plc (formerly Lloyds TSB, plc) over alleged Violations of Securities Laws.

According to the complaint the plaintiff alleges on behalf of all persons and entities who purchased Lloyds ADRs during the period October 1, 2008 through February 27, 2009, that Lloyds Banking Group, plc and certain of its officers and directors violated the Securities Exchange Act of 1934.

Lloyds Banking Group PLC’s Net Income fell from $3.28billion for 2007 to a Net Loss of $320million for 2010. During the first 6months in 2011 Lloyds Banking Group PLC reported a Net Loss of $2.3billion.
On September 18, 2008, Lloyds Banking Group, plc announced that it had reached an agreement to acquire the Halifax Bank of Scotland.
The plaintiff claims that unbeknownst to the public, however, beginning on October 1, 2008, the Halifax Bank of Scotland was insolvent, and received Emergency Liquidity Assistance from the Bank of England.
Then on October 13, 2008, Lloyds Banking Group, plc and Halifax Bank of Scotland announced revised terms to the acquisition and on November 19, 2008, the acquisition was approved by shareholders of Lloyds Banking Group, plc. A similar vote of shareholders Halifax Bank of Scotland on December 12, 2008 resulted in approval of the takeover.
The plaintiff claims that on or about November 24, 2009, the Bank of England revealed the Emergency Liquidity Assistance that it had extended to Halifax Bank of Scotland.
On February 13, 2009 Lloyds Banking Group, plc reported that the Halifax Bank of Scotland had suffered a worse-than-expected £10 billion loss in 2008 and on February 27, 2009, Lloyds Banking Group, plc confirmed that Halifax Bank of Scotland sustained a pre-tax loss of £10.8 billion in 2008, and that it had been plagued by £9.9 billion of bad loans.

Shares of Lloyds Banking Group PLC (ADR) (Public, NYSE:LYG) traded in 2007 as high as $45.77 per share and fell during 2008 to as low as $7.18 per share and continued to decline to as low as $2.29 per share in March 2009.

NYSE LYG shares increased shortly before the 41:40 split on May 6, 2009. However, recently LYG shares traded as low as $1.52 per share.