RBS lawsuits may cost $6bn

Gavel

A lot of dosh in anyone's money.

Reuters reports that two lawsuits brought against Royal Bank of Scotland by shareholders who say they were misled into taking part in a 2008 cash call could cost the bank over $6bn if successful, court documents showed on Tuesday.

Thousands of shareholders are suing for compensation for losses incurred as a result of the $18.27bn rights issue in April 2008, months before RBS came close to collapse and had to be taken over by the state.

The shareholders, organised into two groups who have filed separate claims, allege that the prospectus for the capital raising failed to paint a true picture of the bank's deteriorating financial position.

A first court hearing took place on Tuesday at the High Court in London. The litigation is in its early stages and the hearing was about how it should be structured rather than about the substantive issues.

Hit the link below to access the complete Reuters article:

Shareholder lawsuits could cost RBS four billion pounds - court papers

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