RBS shareholders take action against former directors

The Royal Bank of Scotland (RBS) Shareholder Action Group has issued court proceedings against former directors.
The Royal Bank of Scotland (RBS) Shareholder Action Group has issued court proceedings against former directors. Credit: PA/PA Wire/Press Association Images

More than 12,000 private shareholders have launched a potential £4 billion claim against the Royal Bank of Scotland (RBS) and former bosses over its 2008 share issue.

The Royal Bank of Scotland Shareholder Action Group has issued court proceedings against former RBS directors Fred Goodwin, Tom McKillop, Johnny Cameron and Guy Whittaker.

The Action Group believes the bank’s directors sought to mislead shareholders by misrepresenting the financial strength of the bank and omitting critical information from the 2008 Rights Issue prospectus.

RBS, now majority-owned by the tax-payer, received a government bailout in 2008.

Read: The week for RBS just got even worse

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