RBS agrees further settlement with shareholders over 2008 rights issue
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Royal Bank of Scotland has reached a "full and final" settlement with a large group shareholders over claims it misrepresented its financial health at the time of its 2008 rights issue.
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RBS said the fresh settlement was made, without any admission of liability, with shareholders representing 40% by value of the remaining claimant group.
Following settlements made with four shareholder groups in December, RBS has now settled with shareholders representing 87% of the value of the original litigation claim.
As part of the latest settlement, the UK taxpayer-owned bank has also paid an additional sum in respect of the legal costs incurred by the claimants since December 2016.
Chief executive Ross McEwan said: "We have been very clear that putting our legacy issues behind us is a priority so that we can focus on building the best bank for our customers, shareholders and employees. We are pleased to have reached this agreement. We will continue to explore the possibility of settlement with the remaining claimants but if we cannot settle on agreeable terms we will defend the claims at trial.”
As well as the claims over its rights issue, RBS is also attempting to resolve a US Department of Justice investigation into claims it mis-sold mortgage securities in the run up to the financial crisis, against which the bank has set aside total provisions of £6.8bn.
On Wednesday it was reported that growing hopes of an agreement to end the case had been temporarily derailed due to the widespread clearout of DoJ staff and among state attorneys.