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Shareholders accept offer

RBS avoids court after deal agreed with investors

RBS St Andrew SqRoyal Bank of Scotland will avoid a lengthy court hearing following an eleventh hour deal with the last group of investors claiming it misled them over a 2008 share issue.

The shareholders had secured the final £2 million of the £7m required to convince a judge that they could fund a potential 14-week trial.

But it was announced late this morning that they had accepted an offer of £200m to settle the case, at 82p per share.

RBS, which has denied the allegations against it, has already agreed to pay out £900m to settle with shareholders who lost around 80% of their investments when they subscribed for shares in the 2008 rights issue.

Some of those who held out wanted to see former CEO Fred Goodwin give evidence in court.

 

The final agreement is with roughly 2,000 claimants of more than 27,000 who lodged claims at the outset of the action which threatened to be one of the costliest in British legal history.

Judge Robert Hildyard adjourned court proceedings three times to allow the two sides to reach agreement and there were expectations that they would settle.

RBS insisted that its former executives did not act illegally.

 

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