Majority suing RBS over rights issue willing to settle, court told
Almost all remaining claimants were expected to agree to settle action, judge told
The legal action against RBS centres on a rights issue overseen by former boss Fred Goodwin in April 2008. Photograph: Philip Toscano/PA Wire
The majority of claimants suing Royal Bank of Scotland at the high court in London have indicated a willingness to settle the action, a judge has been told.
The news was announced at a brief hearing in London on Tuesday.
Mr Justice Hildyard was told discussions between the claimants and the defendants were making significant progress.
Jonathan Nash QC, for the claimants, told the judge: “The present position is that the majority of claimants have indicated their willingness to accept the latest offer from the defendant.
“There now appears to be a good prospect that within the course of today the remaining claimants, or nearly all, will confirm they will also agree in principle so as to bring a practical end to the proceedings.”
The judge granted an agreed adjournment until Wednesday morning for talks to continue.
The much-anticipated 14-week civil case was due to begin on Monday, but at the outset of the proceedings the judge gave the go-ahead for the start of the trial to be put back a day for settlement negotiations to be continued. He granted a further adjournment at the resumed hearing.
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 per cent and the UK government was forced to step in when the deal turned toxic.