RBS investors to file a lawsuit against the bank

The RBoS Shareholder Action Group, which consist of more than 12,000 RBS investors have secured litigation/dispute cover. This insurance will be able to cover the other sides legal costs should the shareholders lose in court.

The action group will claim that shareholders were misled when the bank issued £12billion in shares, which was more of an emergency cash injection rather than “capital strengthening exercise” that the bank claimed it was. The shareholders feel that the bank should have been more up front with them about the level of trouble that the bank was in and they should have been able to buy up shares at a much lower cost.The group are pleased to have been able to secure the insurance cover, and while they are confident of bringing the action to court fairly quickly, previous attempts in the US against the bank have already failed, suggesting that there is no certain outcome.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with litigation and commercial dispute Solicitors in Coventary andacross the country.