Working with local counsel, we represent shareholders in a UK case alleging that 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 in connection with a £13 billion Rights Offering that was completed in June 2008. Just months later, in September 2008, RBS failed and had to be bailed out by the UK government. Investors who purchased shares in the Rights Offering lost nearly 90 percent of the value of that investment. Our clients, and investors who are part of groups with which we are working closely, lost billions in connection with the Rights Offering purchases and subsequent RBS collapse.
RBS’s 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. After the initial September 2008 bailout, the UK government bailed out RBS on two subsequent occasions, becoming an 82% shareholder of the company. Litigation was initiated in 2013, before the UK High Court, Chancery Division and trial was scheduled to start in March 2017.
In December 2016, we, in combination with certain other plaintiffs in the pending UK litigation, settled against RBS for approximately £800 million ($1 billion), the largest securities settlement in UK history. Our clients are expected to receive their portion of the settlement in April/May 2017.