Ex-RBS chief to sue bank over share price slump

ONE of Royal Bank of Scotland’s former bosses is seeking to join a £1bn lawsuit against the company.

Angus Grossart, a former vicechairman at the bailed-out lender, was a close ally of its disgraced ex-boss Fred ‘The Shred’ Goodwin, who was stripped of his knighthood for his role in causing the financial crisis.

But now the businessman is teaming up with around 1,000 claimants to join a court battle over its £12bn fundraising drive in 2008.

Tens of thousands of other shareholders claim RBS misrepresented its financial health during this doomed attempt to stay out of taxpayers’ hands.

The new group, which is said to include 739 current staff, is seeking to take part after a deadline imposed by the courts. It is believed Grossart and the others will say they did not participate initially out of fear for their jobs. They are being represented by the law firm Howe & Co.

NatWest owner RBS has agreed to settle with four out of the five groups suing it and has set aside £800m to pay them off.

However, the RBoS Shareholder Action Group, which is made up of around 27,000 investors, has not accepted the deal.

It means the two sides are forging ahead towards a civil trial in May, when Goodwin will take the witness stand.

RBS is believed to be desperate to avoid this as it is likely to dredge up past bad behaviour.

A spokesman said: ‘The bank’s consistent position has been that shareholders that have issued claims after the June 2014 limitation date are not eligible to claim and that it will defend all such claims on that basis.’

Grossart and his lawyers could not be reached for comment.