A group of Royal Bank of Scotland (RBS) shareholders have launched Court proceedings against the bank and some directors.
Which directors are being sued?
Why have they sued?
The RBOS Shareholder Action Group which represents more than 12,000 investors claimed they were misled by directors over its £12bn rights issue in April 2008. The group said the final claim against the bank could be worth up to £4bn.
What do the Shareholders say?
A spokesman for the RBOS Shareholder Action Group said:
“Today represents a giant step forward for the many thousands of ordinary people who lost money as the result of inexcusable actions taken by banks and their directors in the financial crisis. Now, for the first time, some of these directors will have to answer for their actions in a British court.”
Patricia Mohammed, one of the shareholders involved in the claim, said of RBS:
“It was a huge institution, it had a huge history behind it and people on enormous salaries running it – people that we trusted to do the right thing. If we get some compensation, that is very nice.”
Have customer’s lost money?
They believe they have which is why they have sued. This is another blow to the Banks who have already paid out £billions as a result of the PPI mis-selling scandal.
Do You Want To Know More?
If you want to find out more about financial mis-selling, simply click here.