The bank and its former bosses are being accused of misleading thousands of shareholders into investing GBP12bn shortly before the bank’s near-collapse.
The action group represents more than 7,000 investors who subscribed to a total of 22% of the rights issue which occurred just six months before RBS collapsed.
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Hundreds of middle-ranking former RBS employees are also among the individual investors taking part in the legal action, which also includes 80 institutions such as Collins Stewart, Deutsche Bank, SG Hambro, Credit Agricole, HSBC Global Custody and State Street Securities.
The group claims that RBS withheld vital financial information or gave misleading guidance ahead of the stock market rights issue, where shareholders were encouraged to invest in the bank.
Investors are upset over the fact that despite a Financial Services Authority (FSA) investigation, there has been almost no recourse for the bank and its directors.
Mike Neill, a director of the action group, said: "We spent two years and eight months waiting for the FSA’s report. When it came out we were extremely disappointed, to put it mildy. We were left with no choice but to launch the legal action ourselves."
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By GlobalDataGoodwin and his former colleagues have 90 days to contest the allegations.
