By

TheJudge arranges multi million pound indemnity for Lloyds shareholders

TheJudge has successfully secured another large multi-million pound indemnity from UK insurers to assist shareholders of Lloyds in pursuing their claim. The shareholders claim that the directors of Lloyds breached their duties to the shareholders in connection with information that was not disclosed before the vote on the acquisition of HBOS.
The Lloyds shareholders group of claimants is continuing to grow and it is believed the total claim value could potentially extend to the hundreds of millions. The case bears some similarities to the RBS group litigation action, in which the claim value grew by over £1 billion in the few months leading up to the court imposed deadline for new claimants to join the group.
Law firm Harcus Sinclair represent the claimants and Herbert Smith are representing Lloyds. Harcus Sinclair are known for their expertise in complex group litigation, and were appointed last year as the Lead Solicitors under the Group Litigation Order relating to claims being brought by several hundred investors in the CF Arch cru Investment Fund and the CF Arch cru Diversified Fund against Capita Financial Managers Limited.
The litigation insurance facility brokered by TheJudge for the Lloyds action was syndicated between a number of insurance carriers, as is increasingly common where large aggregate limits of indemnity are required.
Speaking from TheJudge, James Blick advises;

“We are proud to be the broker of choice for law firms engaged in respect of these major banking disputes. The litigation funding and insurance market has widely become accepted as a key tool in the financing of litigation and arbitration. The UK is probably the most active and innovative jurisdiction in the world in developing the risktransfer market.”

The Lloyds litigation represents the second major shareholder claim against a UK bank following the financial crisis. Earlier in the year, various groups issued proceedings against RBS in light of the circumstances that led up to the 2007 rights issue. The claims in the RBS case exceed £3billion in value. TheJudge was also engaged in the RBS case, securing one of the largest ever litigation insurance placements on behalf of the claimants represented by Stewarts Law. If you have a case in need of litigation funding or insurance contact our team on: 0845 257 6058.