Royal Bank of Scotland and rating agency Standard & Poor's have been sued by a group of European institutional investors for damages of up to $250m suffered on complex financial products in the lead-up to the global financial crisis.
Reuters reports that the claim is the first group action of its kind to be launched in Europe against an investment bank and rating agency for their conducts prior to the crisis, litigation finance company Bentham IMF said in a statement to the Australian stock exchange on Thursday.
The group of 16 European institutional investors filed the claim in Amsterdam on Wednesday for damages of up to $250m suffered on investments in CPDOs - or constant proportion debt obligations - that were rated AAA by S&P.
'This claim has no merit and we will oppose it vigorously,' said S&P in a statement. 'The ratings on these securities, which date back to 2005-6, were assigned in good faith based on the information available to us at the time.'
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