RBS investor case due in High Court tomorrow

Author: IFAonline
IFAonline | 29 Jul 2013 | 11:20

Categories: Regulation

Topics: RBS

High Court London

Shareholders in Royal Bank of Scotland (RBS) who are suing the bank over a £12bn rights issue made months before its near-collapse will have their first day in court tomorrow.

The Times reports a High Court judge will hold the first ‘administrative hearing' of two separate lawsuits on Tuesday. The cases could result in RBS paying out billions of pounds in compensation.

The rights call in dispute came in April 2008, months before the lender took a £45bn state bailout to avoid collapse.

The two cases argue that RBS mis-led investors by failing to disclose the real state of its deteriorating financial position in documentation, therefore breaching the Financial Services and Markets Act 2000.

The report said the first case has been brought by Bird & Bird on behalf of more than 7,000 retail investors, whose total losses are estimated to be about £4bn.

The second case - worth about £360m - mainly deals with institutional investors, including pension funds of miners, local councils and teachers in the UK, US and Canada.

The Times said RBS had declined to comment.

More regulation news

Related briefings

Recommended reading

Categories

Topics

  • Comments
  • Print
  • RSS
  • Share
blog comments powered by Disqus

Related articles

Most Read

Audio / Visual

Coffee Lounge

Who picked up the gongs this year?

Protected Product Review Awards 2013

Who picked up the gongs this year?

Advisers and providers gathered at the Grand Connaught Rooms in London on 20 November to celebrate the ingenuity and the graft displayed in the protected product arena throughout the last 12 months. These awards are growing in popularity every year, and our congratulations go to the winners and highly commended.

Events

event logo

Retirement Planner Forum & Awards 2014

06 Jun 2014 - 06 Jun 2014

London, UK

event logo

International Fund & Product Awards 2014

16 Jun 2014 - 16 Jun 2014

London, UK

event logo

COVER Breakfast Briefings

26 Jun 2014 - 26 Jun 2014

London, UK

Markets

Sponsored video

Poll

Do you believe the insurance industry can deliver the Chancellor's "retirement advice for all" pledge?