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RBS action group to continue with compensation claim despite settlement reports

Published 27/10/2016

Reports have emerged that RBS is looking to settle some of the outstanding cases
Reports have emerged that RBS is looking to settle some of the outstanding cases

A group representing more than 27,000 retail investors is to press ahead with its compensation claim against the Royal Bank of Scotland (RBS) despite reports that the lender is looking to settle some outstanding cases.

The RBoS Shareholder Action Group said it will continue its £1.25 billion compensation claim on behalf of investors who lost money after subscribing to shares during the RBS rights issue in 2008.

The group claims that ex-directors at the bank had misrepresented its underlying strength at the time and failed to include "critical information" in its prospectus.

The Edinburgh-based lender, which is 73% owned by the taxpayer, is said to have held discussions with a group of institutional investors in a bid to settle a number of cases against the bank, Sky News reported on Wednesday.

A spokesman at the RBoS Shareholder Action Group said: "We note reports in the media that other shareholder group(s) may be close to settling their claims against RBS.

"We wish those claimants well, but today's reports make no difference to our action group's litigation against the bank."

Former RBS chief executive Fred Goodwin will be among the defendants when the trial is held at the London High Court on March 6 next year.

As well as retail investors, RBoS represents a number of UK local authority pension funds and financial institutions, including Bank of America Merrill Lynch, Abbey Life, Axa, Aberdeen Asset Management and Lloyd's of London.

RBS declined to comment.

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