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Ex-RBS Trader Accused of Lying for Bank Sues Over Firing

March 21 (Bloomberg) -- A former Royal Bank of Scotland Group Plc trader, who was criticized by a judge for giving dishonest testimony on behalf of the bank in a 2010 trial, sued at a London tribunal saying he was unfairly fired.

Sam Griffiths, a former leveraged-loan trader at RBS, testified in a lawsuit brought by Highland Capital Management LP accusing the lender of fraudulently terminating a collateralized-debt obligation at the height of the 2008 credit crunch. Judge Michael Burton said Griffiths tried to hide information and gave misleading evidence about the bank’s conduct. “He has lied,” the judge said in a 2012 ruling.

At a tribunal hearing this morning, lawyers for Griffiths contested the use of privileged evidence ahead of the official start of his unfair dismissal case. No further information about the claim was given at the hearing and Griffiths’s lawyer Raja Nadarajan didn’t immediately respond to an e-mail seeking comment.

While damages in unfair dismissal cases are capped at about 70,000 pounds ($106,000), bank employees can seek to reclaim lost or withheld bonuses if a tribunal rules they were dismissed improperly.

RBS asked a London judge last year to block Dallas-based Highland’s $100 million U.S. lawsuit over the deal, which happened during the credit crisis that followed the collapse of Lehman Brothers Holdings Inc. The money-management firm said RBS held a sham auction and used an accounting provision to profit from improperly seizing loans.

RBS declined to comment on the employment litigation.

To contact the reporter on this story: Kit Chellel in London at cchellel@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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