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‘Progress made’ in bid to resolve RBS legal action

The civil case was due to begin on Monday, but the judge granted a series of adjournments to allow settlement discussions to continue.

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A protester holds a banner outside the court (Steve Parsons/PA)

A protester holds a banner outside the court (Steve Parsons/PA)

A protester holds a banner outside the court (Steve Parsons/PA)

Progress “continues to be made” towards settlement of a multimillion-pound High Court action brought by thousands of shareholders against Royal Bank of Scotland.

The update in the high-profile litigation was given to a judge in London on Thursday.

Jonathan Nash QC, representing the shareholders, told Mr Justice Hildyard:”Progress continues to be made.

“There is nothing that has happened over the last 24 hours which makes us feel that the progress is changing direction or that there is any problem.”

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The legal action centres on a rights issue overseen by former boss Fred Goodwin (PA)

The legal action centres on a rights issue overseen by former boss Fred Goodwin (PA)

PA Wire/PA Images

The legal action centres on a rights issue overseen by former boss Fred Goodwin (PA)

The civil case was due to begin on Monday and last for 14 weeks, but the judge overseeing the action has granted a series of adjournments to allow settlement discussions to continue between investors and the bank.

The legal action centres on a rights issue overseen by former boss Fred Goodwin in April 2008 when RBS asked existing shareholders to pump £12 billion into the bank after leading a consortium that spent £49 billion on Dutch lender ABN Amro.

Shareholders claimed they were left nursing hefty losses following the cash call after RBS shares plunged 90% and the Government was forced to step in with a £45.5 billion bailout when the deal turned toxic.

The proceedings have been formally adjourned until June 7.