Millennium Post

Royal Bank of Scotland shareholders file $6-bn suit

Royal Bank of Scotland shareholders have filed a 4 billion pound ($6 billion) lawsuit against the company, claiming they were misled into thinking the bank was healthy just before its collapse.

A group representing 12,000 investors says the bank didn't include vital information in the prospectus for a 12 billion-pound share sale that took place just a few months before Royal Bank of Scotland  was bailed out by the government.

The bailout diluted the holdings of existing shareholders and the stock plunged, slashing the value of their holdings.

Royal Bank of Scotland  is now 82 percent owned by the British government.

The shareholders’ group said in a statement made on Wednesday that the lawsuit names former RBS Chief Executive Officer (CEO) Fred Goodwin and three other directors, as well as the bank itself, as defendants.
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