We were recently approached by Michael Lamoureux (who was introduced to us by the BBC Panorama television programme) who formed the RBS Action Group along with other shareholders who subscribed to the Rights Issue with the RBS in April 2008 (‘the Rights Issue’). In April 2008 RBS shareholders were invited to subscribe to the Rights Issue with an entitlement of 11 new shares for every existing 18 shares they held at an issue price of 200p. The RBS subsequently collapsed on 31st October 2008 and was effectively nationalised on 19th January 2009 when the Government’s holding in the bank was increased from 58% to 70 %.
We are currently carefully examining the Prospectus and all surrounding factors with a view to sustaining a claim for compensation on behalf of the Action Group. In particular we are examining the financial effect of the acquisition of the Dutch Bank ABN Amro and the extent to which the financial problems created by the acquisition of ABN Amro and various other financial problems were not disclosed in the prospectus at the time of the rights issue.
Following our initial enquiries we have now had a meeting with Counsel and have received further evidence from an Expert who has extensive experience in relation to Rights Issue Prospectus and information contained therein. We are also in the process of obtaining further evidence from other Experts around the world on the matter.