An Action Group called the Bradford & Bingley Rights Issue Action Group was recently formed with a view to seeking compensation for Shareholders who lost money in the August 2008 Rights Issue.
Leon Kaye Solicitors who have over 18 years successful experience in Class Actions on behalf of Shareholders and Investors will be acting on behalf of the Action Group.
It is proposed to seek compensation by way of damages for misrepresentation arising out of the Prospectus which preceded the Rights Issue and which Prospectus was sponsored by Citi and by UBS Investment Bank It is considered that although there were Risks Warnings in the Prospectus these were insufficient. The Rights Issue proceeded notwithstanding a rapidly developing Financial and Banking Crisis and in particular the Prospectus failed to properly address the consequences of the Moody’s credit downgrade as a result of which a major investment fund (TPG) had already withdrawn its support.
The number of paid up members of the Action Group is now in the thousands and the numbers are increasing substantially by the day
If you are a member of the Bradford and Bingley Rights Issue Action Group and would like full details of funds received and funds expended in the Action Group please email info@leonkaye.co.uk,with details of your membership including name and address and shareholding, and we will be happy to provide you with a copy of the same.
B&B Rights Issue Action Group members can now access confidential information via our members area. This information includes financial statements of total monies received and total monies expended from members along with current membership levels. Also included in the members area is our letters of claim and Response from the B&B's Solicitors. If you are a member and would like to access this area please email info@leonkaye.co.uk and we will verify your membership and provide you with access details
5th July 2010 – PricewaterhouseCoopers Assessment Notice
An Assessment Notice, determined and recorded by Peter Clokey of PricewaterhouseCoopers, was issued on 5th July 2010 pursuant to the Bradford & Bingley plc Compensation Scheme Order 2008 (as amended) (the Scheme). The Government set up the Scheme to appoint an Independent Valuer to assess what, if any, compensation would be payable to all B&B shareholders by the Government following the collapse and subsequent nationalisation of the building society.
Mr. Clokey’s Assessment Notice determined that "no compensation is payable by Her Majesty’s Treasury to persons who held ordinary shares in Bradford and Bingley plc immediately before they were transferred by the Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (as amended)", in the nationalisation.
This decision means that the only active claim against the B&B is the claim being made by our Action Group, the Bradford & Bingley Rights Issue Action Group. The decision of Mr. Clokey does not affect our claim which is now the only Claim actively seeking compensation for the B&B Rights Issue shareholders.
9 June 2009 - We have now received a formal letter in response to our Letter of Claim. We are currently liaising with Counsel as to how to proceed. As soon as we have further details we will update our members via our website.
-------------------------------------------------Back to the top---------------------------------------------------1st April 2009 – We are still awaiting a formal response from the relevant Directors and the B&B itself. Under the Protocol the response is due over the next three weeks.
-------------------------------------------------Back to the top---------------------------------------------------31st March 2009 – The B&B published its annual report yesterday with a warning that worse was yet to come. The annual report highlighted the B&B's arrears rate and stated that further deterioration in this rate should be expected this year and next. We are investigating the extent to which, at the time of the Rights Issue, the Company and its Directors knew that the B&B’s arrears rate was in such a bad way and whether this was adequately disclosed in the Rights Issue Prospectus. Alex Potter, a banking analyst at Collins Stewart, was quoted in the Daily Telegraph today as stating that the B&B’s arrears rate was “quite spectacular and simply highlights the woeful credit control that was clearly in existence”.
-------------------------------------------------Back to the top---------------------------------------------------7th March 2009 – Public Meeting held at the Ramada Jarvis Hotel along with UK Shareholders’ Association and a Member of Parliament. Leon Kaye presented at this meeting and a brief report can be seen in our Press Articles section by clicking here.
-------------------------------------------------Back to the top---------------------------------------------------27th February 2009 – We have received an acknowledgment of service of our letter of claim and are awaiting a detailed response.
-------------------------------------------------Back to the top---------------------------------------------------27 January 2009 - A Claim Letter was sent last week on behalf of all members of the Action Group seeking compensation addressed to the relevant Directors of the Bradford and Bingley and the Company itself. At this stage new members are invited to join the action group
-------------------------------------------------Back to the top---------------------------------------------------9 January 2009 - Extensive press coverage giving positive support to the Action Group (see "Press Articles" section). Claim letter for members of the Action Group imminent
-------------------------------------------------Back to the top---------------------------------------------------PRESS REPORTS JANUARY 2009
23 December 2008 - We have now received a very positive Opinion from Counsel and it is considered that the Rights Issue Action Group has a very strong case.
We are proposing to submit a Claim letter over the course of the next month and this will be submitted on behalf of all members of the Action Group at that time.
28th November 2008 - We are actively moving forward and to that end we are having further meeting with Counsel an expert on share issues. There has been some press interest already (article in the Daily Telegraph dated 22nd November) and we expect further press interest.
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