Lots of people arguing Lloyds is effectively suing the British taxpayer, so the only real winners will be the lawyers... There is definitely something in this. However there is a counter argument. The winner of this case - which involves more than 30K individual investors and many hundreds of institutional investors which bought shares in the April 2008 rights issue as well as Lloyds, who by the way are all pooling their costs - might just be the integrity of the City of London and the financial markets - if such a thing is even conceivable these days. What I mean is that, in future, firms that are considering deliberately deceiving investors into handing over billions under false pretenses (as may or may not have been the case with RBS) will no longer believe they can get away with such behaviour. And its worth remembering that investors only resorted to the courts since the regulatory authorities have proved so utterly useless and have refused to uphold even the basic tenets of FSMA 2000. heraldscotland/news/home-news/lloyds-sues-rbs-for-420m-over-misleading-rights-issue.24280284
Posted on: Wed, 21 May 2014 21:54:54 +0000
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