Royal Bank of Scotland shareholders are planning to sue the bank and its former chief executive Fred Goodwin for misleading investors over a rights issue in 2008.
The shareholders, known as the RBoS Shareholders Action Group, are in talks with litigation funds to launch a formal £3.3bn fund lawsuit against the bank, according to The Times. The shareholders lost nine-tenths of their money after the bank bought shares in an ill-fated £12bn rights issue. Shareholders claim they were misled by omissions in the prospectus which concealed the frailty of the bank. Shares in the rights issue were purchased at an adjusted £20 pounds each, but have now risen to trade at £225. HSBC, Deutsche Bank and Credit Agricole are three firms backing the sha...
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