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Shareholders still waiting for £200m RBS compensation

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Despite the settlement of a claim a year ago, shareholders are still waiting to receive compensation from Royal Bank of Scotland RBS.


The group action claim was bought by thousands of RBS shareholders against RBS and four of its former directors, including Fred Goodwin. The legal action, the early settlement of which meant that the disgraced Goodwin would not have to give evidence in Court, alleged that the shareholders had been misled over the banks financial position when it launched a rights issued worth £12bn in 2008. The claim was settled prior to the trial commencing in May 2017, with the shareholders being awarded 82 pence per share, payable by RBS.

Delays in the shareholder verification process has resulted in some investors not yet receiving compensation, although some institutional investors have received the agreed payments. One of the main claimants listed in the action, Manx Capital Partners, was acting as the delegated manager of the claim against RBS. However, Manx Capital has become bogged down in legal disagreement with RBS Shareholder Action Group, who were the previous agent for the claimants, with Manx Capital alleging that they had not received key documents from the Group that provide vital details of expenditure and shares to enable the verification process to be completed. RBS Shareholder Action Group deny withholding such documents, saying that Manx Group’s legal team has the required information.

The delays in verification could become problematic legally, with a six year time limit for such claims being in place. During a hearing earlier this year, High Court Judge Mr Justice Hildyard was critical of the delays, describing it as “an appalling situation (that) very many months after the settlement of a very considerable action” the investors had not received payment because of legal “shenanigans” between the parties.

Manx Group has requested that the court to order RBS Action Group to hand over all of its documents and records to their legal team to speed up the share verification process. One of Manx Group’s legal advisors, barrister Ben Valentin, told the High Court that the RBS Action Group had failed “to provide the reliable information that’s needed to enable Signature on behalf of the claimants to complete the settlement process”.

RBS and the RBS Shareholder Action Group declined to comment, the case continues.

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