The RBoS Shareholders Action Group has issued proceedings against RBS, Fred Goodwin, Tom McKillop, Johnny Cameron and Guy Whittaker, in the chancery division of Britain’s High Court to recover billions of pounds lost on the value of their shares in the run up to the bank’s GBP45bn taxpayer rescue.
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The final claim for compensation could be as much as GBP4 billion, the shareholder group said.
The lawsuit alleges that the bank’s directors sought to mislead shareholders by misrepresenting the underlying strength of the bank and omitting critical information from the 2008 Rights Issue prospectus.
A spokesman for the 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."
The RBOS Shareholder Action Group represents over 12,000 private shareholders, many of whom are pensioners, and over 100 institutional investors who lost money in the RBS 2008 rights issue.
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