Court row with RBS is finally abandoned

A COURTROOM battle between Royal Bank of Scotland and disgruntled investors was abandoned yesterday – allowing disgraced ex-boss Fred ‘the shred’ Goodwin to avoid giving evidence.

Angry shareholders had accused the NatWest owner of misleading them over a doomed £12bn fundraising drive in 2008.

Months after they handed over the cash, the lender was bailed out with £45bn of taxpayers’ money and its stock price nosedived.

A civil trial had been due to start last month, but the case was postponed for talks on a £200m settlement. Lawyers for the claimants yesterday told High Court judge Mr Justice Hildyard that they were ready to settle, and the trial was cancelled.

In total, 87pc of them were ready to settle, the court heard, with 13pc keen to see the trial go head, though many are expected to accept the offer.

In a crowing statement, RBS, which spent £1bn on settlements and legal fees to keep the case out of court, said it was ‘a positive outcome for the bank and its shareholders’.

Shares rose 1.4pc, or 3.4p, to 255.1p.