RBS wishes start a legal battle in a row over how to divide a £200m payout they won from the bank
The RBoS Shareholders Effect Group will face their former solicitors Signature Legal remedy in court later this month, barring an 11th-hour settlement.
The matter-of-fact shareholders will also face Manx Capital Partners, which assisted fund their lawsuit and was the lead party in the action against RBS and its late directors.
“This is worse than the Catalan referendum,” said one unsatisfactory RBS shareholder, who said that they fear that it will eat into their compensation payments, socialize with salt into the wound that is the heavy losses they incurred when the bank was effectively nationalised in 2008.
“Our spectacle is that now that the award is agreed, there seems little emphasize in arguing about who should finalise the claims of the members. Surely their absorbs should be the priority here?”
The action group, which represents 9000 investors, from the outset hired Signature in 2015.
This is worse than the Catalan referendum
The law firm maintains that the investors struggled to get the financing they needed to take the the actuality to court until Manx came on board to act as the major claimant in the container.
Together, they won a £200million settlement from RBS in May over its 2008 rights copy, which they claimed misled them about the true conditions of its finances.
They were the fifth and last group to settle with the bank and doing so spared naughty former RBS chief executive Fred Goodwin and other then captains from having to take the stand.
A row has been brewing since then over how that money should be divided between the shareholders and their advocates, advisers and financial backers.
Signature claims that it has been acting exclusively on the instructions of Manx since Trek, when it claims that the action group passed on responsibility for the covering to the investment firm.
The RBoS Shareholders Action Group on face their former solicitors Signature Litigation
In a letter to the unpretentious shareholders dated September 25, it also alleged that 73million RBS cuts that the action group claimed to speak for “never existed” and that as a sequel, the cost of the lawsuit would have to be divided between a smaller than believed group of RBS shareholders, reducing the value of their payouts.
However, the RBS energy group countered and in a letter dated September 27 claimed that it had sacked Signature after it discovered that the law firm had undisclosed financial encroach ons to the bank. It added that it had replaced the firm with Rosenblatt Counselors-at-law. It disputes the charges and claims levied by Signature.
Last Sunday, the undertaking group wrote to its members to say that ahead of the court hearing, it desire send all communications from Signature and Manx to them.
It also acquiesce in to forward all correspondence from members to them.
The RBoS Shareholders Deportment Group said that it could not comment as the litigation is ongoing.
Signature Lawsuit and Manx were unavailable for comment.