PricewaterhouseCoopers and Lloyds Banking Group have been able to escape a much-anticipated High Court trial, after the Yorkshire car dealership that was pursuing the companies decided to drop all its allegations against the companies and just walk away.
The said trial, which would have started this coming April, was set to centre on the roles of Lloyds and PwC, an accountancy firm, with the collapse of Premier Motor Auction.
It was anticipated to become a very tense battleground, with claims from PwC and Lloyds and prior to the trial that the extravagant lifestyle of the chief executive of Premier Auction had contributed to the liquidation of his own assets.
An internal business plan of Lloyds from 2008 was also presumed to be presented before the courts, which lawyers for Premier Auction had been set to argue that it is linked to the efforts of the bank to make use of its the Business Support Unit, its turnaround operation for struggling companies, in order to chase profits.
However, the said allegations have now been dropped, and the litigation is already abandoned, in a move which Lloyds said that “supports [its] long-stated position that the case was without merit.”
A spokesperson for Lloyds said: “The matter has now concluded with no payments made to them.”
It is believed that there was enough funding to go to trial and that the decision of the dealership to abandon the trial was not based on financials.
PwC stated: “We are pleased the claimants have abandoned their case and withdrawn all allegations, and that the court has dismissed the case.
“We have been confident from the outset that this case was misconceived and that PwC had acted properly throughout.”
During the run-up to the said trial, Lloyds had argued against the claims that there were some similarities between its BSU division and the Royal Bank of Scotland turnaround unit called the GRG which was criticised for its “widespread inappropriate treatment” in a stinging report from the watchdog.
The lawyers for Premier Motor Auction did not immediately respond to requests for comments regarding the matter.