Royal Bank of Scotland Group PLC (RBS.LN) shareholders are in
talks with litigation funds about launching a formal GBP3.3 billion
($5.2 billion) lawsuit against the bank and its former chief
executive, Fred Goodwin, U.K. newspaper The Times reported Monday
on its website, citing unnamed sources familiar with the
situation.
The shareholders plan to sue RBS; Mr. Goodwin; former Chairman
Sir Tom Killop; and former investment bank chief Johnny Cameron,
accusing the bank of misleading investors at the time of a GBP12
billion rights issue in 2008, the report said.
It said that if the group secures the GBP12 million-GBP15
million for insurance against the cost of defeat, a writ will be
issued by the end of this month or early October.
The 91 institutional investors understood to be backing the
shareholders include HSBC Holdings PLC (HSBA.LN), Deutsche Bank AG
(DB), State Street Corp. (STT), Credit Agricole SA (ACA.FR) and
Collins Stewart, according to the report.
The bank and its former executives deny any wrongdoing and say
they will "vigorously" defend themselves, the report said.
Times website: http://www.thetimes.co.uk/tto/news
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