The care home operator at the centre of a £40 million settlement with Barclays that was described as the “Libor test case” is preparing a new legal action against Lloyds Banking Group that will focus on the taxpayer-backed lender’s involvement in rigging borrowing rates.
Guardian Care Homes is expected to ask Lloyds for about £6 million in damages, alleging the bank sold it interest rate hedging products linked to Libor, while at the same time its traders were involved in manipulating the rate.
On Monday, Lloyds admitted its role in rate-rigging and paid £226 million to close an investigation by British and American regulators.
Hausfeld, the US law firm, is representing the company in its claim against Lloyds. The same firm acted for GCH in