Investors agree deal over RBS damages
SHAREHOLDERS who brought a multi-million-pound High Court action against Royal Bank of Scotland have reached an agreement in principle with the bank.
The update in the high-profile litigation comes after a judge overseeing the action granted a series of adjournments to allow settlement discussions between investors and the bank.
The legal action centres on a rights issue overseen by former boss Fred Goodwin in April 2008 when RBS asked existing shareholders to pump £12bn into the bank after leading a consortium that spent £49bn on Dutch lender ABN Amro.
An update sent to all claimants by the RBS Shareholders Action Group at the weekend said: “Having carefully considered the merits of the current offer... we have decided to accept the offer of 82p per share on behalf of our membership.
“This is a decision which is fully supported by our legal advisers.
“We understand that accepting an offer of slightly below the previously advised range of damages, being 92 pence per share and 234 pence per share, may be surprising to some claimants.
“However, there are a number of practical and legal risks which had to be considered.”
The update went on: “The longer the case continues, the more cost will be expended in legal fees and other costs, which will result in more deductions from any damages award.
“Put simply, we would have to significantly ‘beat’ the current offer of 82p to put the claimants in the same position as they would now be in, further down the line.
“The claim is presently being funded by a substantial claimant in the action.
“That claimant has decided to accept the offer and they are no longer willing to fund the action.”