Investors legal claims against RBS reach nearly $7bn

RBS building

Hundreds more investors have joined an unprecedented group legal action against Royal Bank of Scotland, alleging they were misled during an emergency cash call in 2008, and are claiming damages of around £4bn ($6.73bn).

Reuters reports that RBoS Action Group, which represents the largest group of shareholders, said it had filed claims by Friday and would lodge more next week. The claims could be for at least £1.2bn ($2.02bn).

That adds to claims from three other groups that total more than £2.5bn ($4.21bn) on behalf of big financial institutions and thousands of small investors in the first American-style class action set to hit English courts.

Last Thursday marked the six-year anniversary of when the shares RBS sold in its emergency rights issue began trading and could be the cut-off point under English law after which damages claims are no longer be accepted.

To access the complete Reuters article hit the link below:

Legal claims over RBS cash call near 4 billion pounds

New UK banking standards body to be launched this year

Bank Workers CharityBank Workers Charity - Supporting bank workers

Register for Financial Markets News Alerts