Clyde & Co drafted in by RBS shareholders for potential class action
Clyde & Co partner Julian Connerty is advising a group of shareholders planning to sue the Royal Bank of Scotland (RBS) for allegedly forcing small companies out of business through its global restructuring group (GRG).
The action group is made up of individuals and businesses who claim its restructuring group, which dealt with companies facing collapse, acted unlawfully. It argues that the bank deliberately contributed to the demise of several small businesses in order to profit from their losses.
The claimants allege that the bank deployed a range of methods in order to undervalue business assets and put them in breach of covenants. On its website the action group said: “We believe that GRG have acted unlawfully and that our members losses can be attributed to such unlawful action rather than to external economic factors.”
RBS is the second bank in two months to be threatened with a shareholder action after 220 Lloyds investors launched a claim in the High Court last month over the bank’s HBoS takeover in 2008.
Source: thelawyer
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