RBS settles with more shareholders over rights issue

RBS chief executive Ross McEwan

Royal Bank of Scotland has reached an out-of-court settlement with more shareholders who alleged the bank misled them during a £12 billion rights issue during the financial crisis, according to a Reuters report.

Shareholders representing about 40% by value of the remaining claimant group bringing a civil lawsuit against the bank agreed to settle their claim, the report said.

RBS said it has now reached a resolution with shareholders representing 87% of the original claims by value in the lawsuit.

“We are pleased to have reached this agreement,” said Ross McEwan, CEO of RBS, in a statement.

“We will continue to explore the possibility of settlement with the remaining claimants but if we cannot settle on agreeable terms we will defend the claims at trial.”

The lawsuit is being brought by RBS investors who bought shares during the rights issue in 2008.

They allege RBS, which was rescued later that year in a £45 billion government bailout, and four of its former directors, concealed the scale of its financial problems.

The case has already led to out-of-court settlements by RBS totalling hundreds of millions of pounds with four of five groups of investors originally suing the bank.