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RBS Investors Likely to Get Lesser Settlement Amount
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Per an article by Reuters, Royal Bank of Scotland’s shareholders might be left over with a small portion of the settlement they are entitled to receive due to excessive litigation costs.
The RBS Shareholders Action Group said that the investors who settled at 82 pence with the bank might get hold of about 55-60% of net proceeds. According to Reuters, per a person involved in the group, some of the investors might be disappointed with the resulting amount.
Background
The settlement relates to the charges imposed on Royal Bank of Scotland for misrepresenting the bank’s financial health to its shareholders ahead of a £12 billion rescue fundraising at the height of the financial crisis in 2008.Investors had lost almost 80% of their money when it collapsed a few months later and had to be bailed out by the British government.
The nine-year long case was finally settled in May 2017 when the bank offered RBS Shareholders Action Group to reach settlement with 82 pence per share.
The institutional investors had accepted Royal Bank of Scotland’s previous offer of 43.15 pence per share, taking into consideration the building litigation costs.
Manx Capital Partners, one of the major institutional claimants that is currently responsible for the management of group lawsuit, said the legal costs charged by Signature Litigation, group’s law firm, were “very comfortable .” The law firm will have to be paid about 9% of the total settlement costs.
Signature Litigation’s spokesperson said that the final costs cannot be told with certainty at the moment. But it is hopeful that the claimants will receive money by the end of 2017.
Some Other Banks in Legal Trouble
One of the largest banks in the United States currently amid a lot of legal trouble lately is Wells Fargo & Company (WFC - Free Report) . The bank’s downfall started after the news of its involvement in opening fake customer accounts hit the markets.
Credit Suisse Group AG recently agreed to pay $79.5 million to settle all lawsuits filed against it by MassMutual, Massachusetts Mutual Life Insurance Company, relating to the sale of mortgage-backed securities before the financial crisis.
With an aim to move past the litigation issues, Citigroup Inc. (C - Free Report) agreed to resolve a private U.S. antitrust lawsuit that accused it of rigging London Interbank Offered Rate. The company will be paying $130 million to settle the case, without admitting any wrongdoing.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
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RBS Investors Likely to Get Lesser Settlement Amount
Per an article by Reuters, Royal Bank of Scotland’s shareholders might be left over with a small portion of the settlement they are entitled to receive due to excessive litigation costs.
The RBS Shareholders Action Group said that the investors who settled at 82 pence with the bank might get hold of about 55-60% of net proceeds. According to Reuters, per a person involved in the group, some of the investors might be disappointed with the resulting amount.
Background
The settlement relates to the charges imposed on Royal Bank of Scotland for misrepresenting the bank’s financial health to its shareholders ahead of a £12 billion rescue fundraising at the height of the financial crisis in 2008.Investors had lost almost 80% of their money when it collapsed a few months later and had to be bailed out by the British government.
The nine-year long case was finally settled in May 2017 when the bank offered RBS Shareholders Action Group to reach settlement with 82 pence per share.
The institutional investors had accepted Royal Bank of Scotland’s previous offer of 43.15 pence per share, taking into consideration the building litigation costs.
Manx Capital Partners, one of the major institutional claimants that is currently responsible for the management of group lawsuit, said the legal costs charged by Signature Litigation, group’s law firm, were “very comfortable .” The law firm will have to be paid about 9% of the total settlement costs.
Signature Litigation’s spokesperson said that the final costs cannot be told with certainty at the moment. But it is hopeful that the claimants will receive money by the end of 2017.
Some Other Banks in Legal Trouble
One of the largest banks in the United States currently amid a lot of legal trouble lately is Wells Fargo & Company (WFC - Free Report) . The bank’s downfall started after the news of its involvement in opening fake customer accounts hit the markets.
Credit Suisse Group AG recently agreed to pay $79.5 million to settle all lawsuits filed against it by MassMutual, Massachusetts Mutual Life Insurance Company, relating to the sale of mortgage-backed securities before the financial crisis.
With an aim to move past the litigation issues, Citigroup Inc. (C - Free Report) agreed to resolve a private U.S. antitrust lawsuit that accused it of rigging London Interbank Offered Rate. The company will be paying $130 million to settle the case, without admitting any wrongdoing.
4 Stocks to Watch after the Massive Equifax Hack
Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?
Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>