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Standard Life and L&G consider legal action over RBS cash call
by Alex Steger on Sep 05, 2013 at 08:00
Standard Life Investments (SLI) and Legal & General Investment Management (LGIM) are considering suing Royal Bank of Scotland (RBS.L) over its £12 billion capital raising in 2008 under former chief executive Fred Goodwin, according to reports.
The Financial Times reported that the institutional investment giants have not yet launched proceedings but are carrying out preliminary inquiries over whether to take action.
The paper said the investment companies have hired litigation firm Quinn Emanuel to look into whether the bank misled investors about its financial strength in the prospectus for the cash call.
It would not be the first law suit RBS is facing over the cash call, made to shore up its balance sheet following its ill-fated acquisition of Dutch bank ABN Amro.
The RBS Shareholder Action Group is already suing the bank and four former directors for a total of £900 million, while a second law suit worth around £362 million is being brought by lawyers on behalf of 53 institutional investors.
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by James Phillipps on Dec 09, 2013 at 07:52