US judge dismisses class action against Royal Rank of Scotland
07 September 2012
A US judge has dismissed a case against Royal Bank of Scotland (RBS) brought by its shareholders.
In the UK RBS shareholders are involved in a £3.3 billion lawsuit against the lender and former directors, including Fred Goodwin.
According to The Telegraph, US preference shareholders filed a class action against RBS, its directors and advisory banks in 2009 saying the bank had materially misled them about it's sub-prime exposure and its acquisition of ABN Amro.
A New York district judge dismissed the case on finding that there had been no "material" mis-statements.
According to the report, the decision came only days after it emerged that UK shareholders who took part in the £12-billion rights issue of the bank in 2008 were about to launch a lawsuit of their own.
Meanwhile, RBS plans to close down its precious metals trading operation, Reuters quoted an industry source as saying and the bank confirmed it was halting its commodity research due to an internal review.