Top UK investors to bring legal claims against RBS over 2008 rights issue: report
26 April 2014
Five of the biggest investors in the UK are set to file lawsuits against Royal Bank of Scotland next week, saying they had been misled over the massive rights issue in 2008 and are claiming over £1 billion back, Reuters reported quoting sources.
Legal & General, the biggest investor in the lender at the time of the rights issue, Standard Life, Prudential, Aviva and Universities Superannuation Scheme were all expected to file claims in a London court on Wednesday, Reuters said yesterday citing five people with knowledge of the matter.
Former RBS boss Fred Goodwin asked shareholders bring in £12 billion in May 2008 to boost the bank's capital position, which was down to dangerously low level after it bought parts of ABN Amro and lost billions on US credit market assets.
Goodwin and former chairman Tom McKillop, as also other former executives are also being sued in some of the lawsuits. The bank is now being run by a new team. It is owned 81 per cent by the government which still had to bail it out despite Goodwin's money-raising exercise.
According to commentators, the case was likely take years to resolve and could cost RBS billions of pounds in compensation. The case could also end up hauling Goodwin into court as the bank's key witness.
Rejecting the accusations RBS said it would defend the claims.