The discredited former chief executive of The Royal Bank of Scotland Fred Goodwin is set to have his say in the High Court in London. He will be one of several key witnesses in a case brought by The RBS Shareholders Action Group.
It claims that a rights issue prospectus in June 2008 contained misleading statements and is seeking around £1.2bn in compensation.
Another witness will be Tom McKillop, chairman alongside Goodwin, but who, unlike Goodwin, seems to have retained his knighthood.
He is scheduled to be followed by Johnny Cameron, the former head of RBS's investment bank. Also set to be questioned is Guy Whittaker, former finance director.
Legal costs exceed £100m for defendants
Legal costs for the defendants alone already exceed £100m, noted The Hon Mr Justice Hildyard in a judgment issued in respect of a hearing on 23 February. Signature Group LLP is acting for the RBS Shareholders Action Group.
Herbert Smith Freehills is representing the defendants.
An RBS press officer says that four other groups representing shareholders have already settled out of court. The bank has agreed to pay them around £700m, representing around 87% by value of the total set aside by the bank.
But this is not an admission of liability, the press officer stresses.
Action Group explains the case
- The members of the RBS Shareholders Action Group Limited have brought a claim for circa £1.2bn, including interest and costs
- This is for breaches of section 90 of the Financial Services and Markets Act 2000 by Royal Bank of Scotland Group Plc and four of its directors
- The claim is 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.
It is currently pursuing legal action on behalf of more than 27,000 investors who lost money by subscribing for shares during that rights issue.