Back to all announcements

Shareholders 'set to sue RBS for $5.2 billion'

Royal Bank of Scotland (RBS) could face legal action from its own shareholders in the near future, it has emerged.

According to a report in The Times today (3 September), the RBoS Shareholders Action Group is in talks with litigation funds over the possibility of filing a £3.3 billion ($5.2 billion) lawsuit against the major British financier.

It is thought members of the group are planning to sue the former chairman of RBS Tom McKillop, the company's ex-chief executive Fred Goodwin and its former investment bank leader Johnny Cameron.

These charges relate to the alleged misleading of investors over a rights issue worth some £12 billion four years ago, which the group claim involved the organization purposefully omitting information to disguise how much financial trouble it was in.

Insiders with knowledge of the prospective action told the news source that the group is hoping to raise between £12-15 million in the coming weeks to protect itself against defeat.

By Gary Cooper