Royal Bank of Scotland agrees settlement with three shareholder groups over 2008 rights issue
- Credit: PA
Royal Bank of Scotland (RBS) has reached a “final settlement” with three out of the five shareholder groups bringing compensation claims against it in connection with its 2008 rights issue.
The banking groupr, which is 73% owned by the Government following its bail-out during the financial crisis, said the settlement represented 77% of the claims by value involved in the litigation.
RBS said the deal was struck in order to “minimise further material litigation expense and management distraction and without any admission of liability”, adding that it is willing to make available £800m in total to be “split among all five shareholder groups” – a sum covered by existing provisions.
“RBS will now seek to agree finalised terms with members of the remaining two groups whose claims are presently continuing,” it added. “Any claims for which settlement is not achieved will, however, continue to be vigorously defended. The trial for such claims is due to commence in March 2017.”
The legal action is linked to a rights issue overseen by disgraced former boss Fred Goodwin.
You may also want to watch:
In April 2008, RBS asked existing shareholders to inject £12bn into the firm to strengthen its reserves after the bank had spent £49bn on the acquisition of Dutch bank ABN Amro.
The deal proved toxic and, just months later, the value of RBS shares plunged 90% and the Government had to step in.
- 1 Postman who abandoned 'undriveable' van wins unfair dismissal claim
- 2 Caravans pitch up at Felixstowe park
- 3 Former Ipswich Town boss Keane as you've never seen him before
- 4 Busy high street taped off by police
- 5 Jack Whitehall praises award-winning Suffolk gastropub after visit
- 6 Coronavirus 'growth rate' rises further in East Anglia
- 7 'Too many men can cause a problem' - Ashton says quality, not quantity, is key in Town's squad rebuild
- 8 A14 and A12 set for major upgrade work
- 9 GP surgery in 'special measures' after patients and staff raise concerns
- 10 Glass found in popular paddling pool forcing it to close
Current chief executive Ross McEwan said: “We have been very clear that we wanted to deal with as many of our legacy litigation issues as possible during 2015 and 2016.
“We are pleased to have reached this agreement and hope that it will be accepted by the remaining claimant group(s) so that this long course of complex and costly litigation can now be concluded.”