The current status of the legal action is detailed below:
The Members of the RBOS Shareholders Action Group Limited have brought a claim for circa £1.2 billion, including interest and costs, for breaches of section 90 of the Financial Services and Markets Act 2000 by Royal Bank of Scotland Group Plc (“RBS”) and four of its directors in respect of the contents of a Rights Issue Prospectus dated 30 April 2008. The members of the Action Group comprise a substantial number of both institutional and individual investors who subscribed to the RBS Rights Issue promoted in the Prospectus in 2008. Their claims are being organised and advanced by the Action Group.
The claim has been set out in a letter of 12 March 2012. A detailed response was provided by Herbert Smith Freehills, Solicitors, on behalf of the defendants, on 18 June 2012. This exchange of letters focussed upon six respects in which the Prospectus contained untrue and/or misleading statements. The claim, as now set out in the Pleadings (as amended) proceeds solely upon a breach of section 90 as the basis of claim. Other grounds such as fraud and deceit, misrepresentation at common law or under the Misrepresentation Act 1967, have not been taken up. Counsels’ Opinion advises positively on the merits of a claim by investors under section 90. Experts’ reports are supportive, and their conclusions are now reflected in the pleadings.
There have been ten Case Management conferences before His Honour Justice Hildyard QC, with the next scheduled for September 2016. After discussion, but ultimately no contest, trials on liability and quantum have been split. The trial on liability (Trial1) has been set to begin in March 2017. Disclosure of documents by the defendants is now complete. Expert evidence collection and witness evidence collection and assessment are all in hand.