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RBS shareholders sue bank and Goodwin for £4bn

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  • 03/04/2013
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RBS shareholders sue bank and Goodwin for £4bn
A group of Royal Bank of Scotland (RBS) shareholders have today launched a £4bn legal action against a number of top ex-directors, including Fred Goodwin.

The RBS Shareholder Action Group announced it has issued proceedings against Goodwin, Tom McKillop, Johnny Cameron, and Guy Whittaker, who were all bank directors. It is also suing the bank itself.

The group claimed the bank’s directors sought to “mislead shareholders by misrepresenting the underlying strength of the bank and omitting critical information from the 2008 Rights Issue prospectus”.

It said RBS would be liable for the losses incurred on shares subscribed in the rights issues.

A group spokesman said: “Today represents a giant step forward for the many thousands of ordinary people who lost money as the result of inexcusable actions taken by banks and their directors in the financial crisis. Now, for the first time, some of these directors will have to answer for their actions in a British court”.

The RBOS Shareholder Action Group represents more than 12,000 private shareholders, many of whom are pensioners, and some 100 institutional investors who lost money in the RBS 2008 rights issue.

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