2 Min Read
LONDON, April 27 (Reuters) - Royal Bank of Scotland has reached an out-of-court settlement with more shareholders who alleged the lender misled them during a fundraising during the financial crisis, the state-owned bank said on Thursday.
Shareholders representing 40 percent by value of the remaining claimant group bringing a lawsuit against the bank have agreed to settle their claim.
The civil lawsuit, due to start in May, is being brought by RBS investors, including former and current employees and around 100 institutions, who bought shares during a 12 billion pound ($15.35 billion) rights issue in 2008.
They allege RBS, which had to be rescued later that year in a 45 billion pound ($57.98 billion) government bailout, and four of its former directors, concealed the extent of its financial woes.
The case has already led to out-of-court settlements by RBS totalling hundreds of millions of pounds, with four of five groups of investors originally suing the bank.
As a result of the latest settlement, details of which were not disclosed, RBS has now reached a resolution with shareholders representing 87 percent of the original claims by value in the lawsuit, the bank said.
"We are pleased to have reached this agreement," Ross McEwan, CEO of RBS said in a statement.
"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." ($1 = 0.7762 pounds) (Reporting By Anjuli Davies; Editing by Rachel Armstrong)