Two local authorities, North Yorkshire and Merseyside, whose pension funds have a combined value of £4bn, claim RBS and Goodwin falsely reassured investors that the bank was in good health.
They have hired Cherie Blair to represent them in a New York court. The class action lawsuit is open to all European and US investors to join.
The Times says the case can be heard in the US because RBS conducted a significant amount of business there and the courts are more flexible and less expensive.
The UK Shareholders’ Association is also forming an action group to represent Lloyds shareholders, including both former LloydsTSB and HBOS investors.
The UKSA says the views of the original LloydsTSB shareholders have been ignored in favour of the wishes of the Government and the interests of HBOS shareholders when the merger with HBOS was proposed.
It says: “We will be considering what actions we might take to oppose the further erosion of shareholder value, and creeping Government control of the bank, including legal action and discussions with institutional shareholders.”