REPORT: RBS is doubling a settlement offer to shareholders who are suing it for its ill-fated 2008 rights issue

pulse

May 22, 2017 9:04 AM

In that 2008 rights sale, investors were offered £12 billion in new, additional shares. Investors who bought them lost over 90% of their money.

Ross McEwan, Chief Executive of RBS (Royal Bank of Scotland).

The Royal Bank of Scotland has reportedly doubled a settlement offer to thousands of shareholders that are suing the bank and former RBS executives after they invested in the bank before its 2008 rights issue and subsequently lost lots of money.

settlement with investors during talks on Sunday. This is more than double that of a previous offer of 40p-per-share and the reportedly new proposed settlement figure comes just hours before the bank heads to High Court for a trial starting on Monday.

The report also said that out of the

The 12,000-strong RBS Shareholder Action Group launched a £4 billion lawsuit in 2013 against RBS and former RBS executives Fred Goodwin, Tom McKillop, Johnny Cameron, and Guy Whittaker. The group accused RBS and the former executives of "misrepresenting the underlying strength of the bank and omitting critical information from the 2008 Rights Issue prospectus."

Goodwin is due to make his first public appearance in eight years on June 8 and 9 in a 14-week trial.

pulse