RBS Shareholders Sue for $6 Billion Over 2008 Rights Offering
Royal Bank of Scotland Group Plc and directors including former chief executive officer Fred Goodwin were sued by about 12,000 shareholders over the bank’s 2008 rights offering a few months before a government bailout.
The investors may seek as much as 4 billion pounds ($6 billion) in the class-action suit filed today in London, the RBOS Shareholder Action Group said in a statement. It’s the second complaint in less than a week against the bank after pension funds and investment firms sued over the rights issue on March 28.
RBS is 81 percent owned by British taxpayers after getting the world’s biggest bank bailout -- 45.5 billion pounds -- in 2008 and 2009. The lender had raised 12 billion pounds from investors in the share sale before collapsing under the weight of bad loans.
“Directors sought to mislead shareholders by misrepresenting the underlying strength of the bank and omitting critical information from the 2008 rights issue prospectus,” said Locksley Ryan, the group’s spokesman.
Former RBS chairman Tom McKillop, ex-head of corporate markets Johnny Cameron and former finance director Guy Whittaker were also named in the suit filed today in London.
David Gaffney, a spokesman for Edinburgh-based RBS, declined to comment.
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