Bank shareholders sue in UK for record loss

Working with local counsel, we represent shareholders in a UK case alleging that, in 2008, the Royal Bank of Scotland (RBS) misled investors about its exposure to subprime-related assets, collateralized debt obligations, and the inflated value of its assets. When the misrepresentations came to light, RBS lost £44 billion of its market value and many RBS shareholders lost substantially all their investments. RBS’s subsequent write-downs and reported full-year net loss for 2008 represented the largest loss ever for a UK-based company and the largest for any commercial bank in the world. Subsequently, the UK government bailed out RBS on three occasions, becoming an 82% shareholder of the company. The case was initially brought in March 2013, and was scheduled to begin a trial on liability in March 2017.  In December 2016, however, RBS agreed to pay up to £800 million to settle all claims related to the litigation, and announced that it had reached a “full and final settlement” with three of five shareholder groups representing 77 percent of the claims against it, based on value of the claims.  All of the claimants we represent are part of the announced settlement, which should be finalized in the 1st half of 2017. 

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