A significant portion of the Royal Bank of Scotland (RBS) investors represented by Signature Litigation in the ongoing £4bn rights issue battle have settled their claims, while a remaining 60% of the firm’s claimants, including 27,000 retail investors, are pushing forward for trial on 3 May.
A statement issued by the claimants said that some of their party were ‘willing to swallow large losses in return for some compensation.’
The statement added: ‘We are pleased that some members of our group have been able to come to an agreement with the bank. However, we remain resolute in our fight for justice for retail shareholders and the numerous institutions that remain in this litigation. We are funded for the trial ahead.’
Led by Signature Litigation partner Graham Huntley, the claimant group represents individual and institutional investors who lost money during a June 2008 rights issue in which £12bn was raised for the bank. Later that year, RBS collapsed and was bailed out by taxpayers at a cost of over £45bn.
The action is levelled against RBS’ former chief executive Fred Goodwin in addition to three other executives: former chairman Tom McKillop, former financial director Guy Whitaker and former head of corporate markets Johnny Cameron.
Claimants represented by Quinn Emanuel Urquhart & Sullivan, Mishcon de Reya and Stewarts Law settled their cases in December 2016. RBS is represented by Herbert Smith Freehills partners Adam Johnson, Simon Clarke, Kirsten Massey and James Norris-Jones. The firm came under scrutiny after it emerged in June last year it would likely exceed its previous cost estimate of £92m.