Royal Bank of Scotland (RBS) and its former directors have been sued by a group of 12,000 ordinary shareholders and 100 institutions, demanding $6bn compensation for losses incurred in the bank's 2008 rights issue.
The RBOS Shareholder Action Group launched legal proceedings in the chancery division of Britain’s High Court against Fred Goodwin, Tom McKillop, Johnny Cameron, and Guy Whittaker.
The Action Group claimed that the lender’s directors tried to mislead shareholders by misrepresenting the underlying strength of the bank and omitted critical information from the 2008 Rights Issue prospectus.
The group claimed that the bank violated Section 90 of the Financial Services and Markets Act 2000 and is liable for the losses its shareholders sustained on shares subscribed.
It is believed that the final claim may amount to as much as £4bn.
A spokesman for the Action Group said, "Now, for the first time, some of these directors will have to answer for their actions in a British Court."
The recent case represents the second claim filed against RBS in recent days.