Apr 8, 2013

The Halifax & Lloyds Bank PLC - the missing millions, subject of "super injunctive proceedings"

It has been alleged that when Lloyds Bank took over the Halifax Building Society, the Halifax failed to notify Lloyds of millions that had been earmarked for some investors and beneficiaries, who had monies held in Trust or who had at the time of the take-over, yet to be identified.

As we understand the situation, a beneficiary, who had been contacted by the Halifax in respect of a “windfall” of several millions, took action against Lloyds for the recovery of her legacy.  It transpired Lloyds contested the application on the basis of non-disclosure by the Halifax at the time of the take-over.

According to the information available to us, when the matter appeared in a closed session of the High Court, the matter was made subject of injunctive proceedings because there were a number of claimants and the amounts involved ran into countless millions – one beneficiary was owed in excess of £7,000,000.

The injunction, which prevented disclosure of the proceedings, was allegedly granted because disclosure of the action at a time all the major banks were in free fall, would have adversely affected Lloyd’s publically listed share price.

We are told the High Court immediately found in favour of the claimants but that Lloyds continued to drag their feet and claimants still await payment.  More importantly, we are told one of the directors was arrested for contempt of court and taken to a London police station.

If you know anything about the proceedings, we would like to hear from you.

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