RBS and S&P Sued by European Investors Over Derivative Loss

Royal Bank of Scotland Group Plc and Standard & Poor’s were sued in the Netherlands by 16 investors over a debt-linked derivative product that fell in value by as much as 90 percent during the financial crisis.

The class-action lawsuit relates to constant-proportion debt obligations created by RBS’s ABN Amro unit and rated AAA by McGraw Hill Financial Inc.’s S&P, according to Bentham IMF Ltd., the company which is funding the case. The investors are seeking about $250 million.