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RBS’s £100m legal bill over investor bailout

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Royal Bank of Scotland has run up legal costs of over £100m in its bid to defend claims it misled investors ahead of the bank’s collapse in 2008.

The Times reports the action being led by the RBS Shareholder Action Group has so far cost the bank £86.2m, according to court filings by RBS’s lawyers Herbert Smith Freehills.

Once VAT is added, the cost totals £103.4m.

Around 27,000 retail investors are suing the bank for £4bn, alongside institutions including Axa and Aberdeen Asset Management.

They claim they were misled into supporting a £12bn emergency fundraising in April 2008, six months before RBS was bailed out by the Government.

The Government still holds a 72 per cent stake in the bank.

The case has been filed against former chief executive Fred Goodwin, former chairman Sir Tom McKillop, former finance director Guy Whittaker and former head of RBS’s investment bank Johnny Cameron.

An RBS spokesman told the newspaper: “We continue to strongly contest these claims.”

Herbert Smith Freehills and the RBS Shareholder Action Group declined to comment.

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  1. And frankly, I hope that the Bank is successful and will secure costs against the claims’ group. Of course that doesn’t excuse any negligence of the ex-directors but the Bank and its shareholders shouldn’t suffer.

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