Shareholders in the Royal Bank of Scotland is filing a suit against the financial institution and four former directors. The suit claims that the shareholders sustained direct losses when the bank agreed to a state bailout back in 2008.
The RBoS Shareholders Action Group has sued four former directors in their personal capacity for their financial injuries. Aside from RBS, also included are Fred Goodwin, Johnny Cameron, Guy Whittaker and Tom McKillop. The suit was filed in the Chancery Division of the High Court of Britain in order to recover billions of pounds of share values lost because of the GBP45 billiion bailout agreed to by the bank and the said directors.
According to group spokesperson, "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. Now for th efirs ttime, some of these directors will have to answer for their actions in a British Court."
RBS and its legal representative, the law firm of Herbert Smith declined to respond to requests for comments while all of the four directors named in the suit could not be reached.
Join the Conversation