RBS closer to ending rights issue dispute
Ulster Bank owner Royal Bank of Scotland (RBS) has moved one step closer to reaching a settlement with all five shareholder groups that brought compensation claims against the lender in connection with its 2008 rights issue.
The bank said it had reached a "full and final settlement" with a further 9% of total claimants, which represent part of the fifth and final shareholder group that has yet to resolve the dispute.
Those claimants are estimated to have received around £80m of the £800m pot that was put aside by the bank to cover the claims. But the bank stressed it made the payments "without any admission of liability".
Having settled this further portion of the rights issue claims, RBS said it had now "reached a resolution" with shareholders representing 87% of the claims by value in the litigation, leaving 13% of claims unresolved. RBS has put aside an extra £10m in provisions in light of the legal costs that claimants have faced.