Investment attorneys are encouraging individuals who invested with Lloyds Banking Group related to the class action lawsuit filed on November 23, 2011, to explore all possible loss recovery options. The class action lawsuit was filed in the United States District Court of the Southern District of New York and applies to the class period running from October 1, 2008 to February 27, 2009.
The lawsuit makes allegations related to the acquisition of Halifax Bank of Scotland (HBoS), which occurred on September 18, 2008. The acquisition was reported on Lloyds Banking Group’s SEC 6-K filing.
The class action lawsuit states that, “Unbeknownst to the public, beginning on October 1, 2008, HBoS was insolvent, and had received Emergency Liquidity Assistance (ELA) from the Bank of England.” According to the lawsuit’s allegations, “Defendants had actual knowledge about the HBoS’s financial condition, and in particular, its receipt of the ELA and the circumstances which necessitated the ELA, and their failure to disclose this information rendered their public filings materially false and misleading.”
Furthermore, according to the assertions of the class action, “As a direct and proximate result of the foregoing material omissions and misrepresentations and the fraudulent scheme in which defendant participated, the market prices of Lloyds ADRs were artificially inflated throughout the class period.”
Investors whom — whether through inheritance, employment or personal investment — acquired Lloyds Banking Group ADR stock that resulted in a concentrated stock position with full-service firms may not have been educated about the risks of such a position, a responsibility that falls squarely on the shoulders of the brokerage firm. Investors who suffered losses as a result of their Lloyds Banking Group holdings may have a valid securities arbitration claim and should consider what path they will take in order to recover financial losses.
To find out more about your legal rights and options, contact an investment attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.