Fred the Shred and RBS hit with £2.4bn legal claim

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The Royal Bank of Scotland (RBS) and 17 former directors, including former CEO Fred Goodwin, have been hit with a £2.4bn legal claim from a group of investors.

The RBS Shareholders Action Group claims the part-nationalised bank misled investors in its prospectus for the £12bn rights issue used to fund the acquisition of Dutch bank ABN Amro, reports the Independent. Ex-chief executive Fred Goodwin, former head of investment banking Johnny Cameron and former finance director Guy Whittaker are among those expected to receive letters from the group. The action group is backed by 7,400 private shareholders and some 80 institutional investors, including Collins Stewart, Deutsche Bank, SG Hambro, State Street Securities and HSBC Global Custody. ...

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