The actions relate to RBS's £12 billion 2008 rights issue which took place just before the bank nearly collapsed and was bailed out by the UK government. The investors claim that the prospectus included untrue or misleading statements which encouraged those investors to apply to participate in the share issue.
Law firms line up
Bird & Bird is representing the RBS Shareholder Action Group which is suing RBS and four former directors. Stewarts Law, representing over 50 institutions, is planning action against the company alone. A third group, represented by Leon Kaye Solicitors, has yet to issue proceedings but it is preparing them. In a pre-trial hearing, a High Court judge is deciding on whether the claims should be heard together. Leon Kaye Solicitors is representing a third group of investors but has yet to start proceedings.
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