Former Torex Retail boss Neil Mitchell has formed an action group and engaged litigation specialist Enyo Law with the aim of filing a multi-billion pound lawsuit against Royal Bank of Scotland.
Mr Mitchell, who uncovered a fraud at the software company and was fired for his trouble, will act as the chairman of the not for profit organisation.
He said the RBS GRG Business Action Group had been founded to “to support UK Business” in anticipation of a “multi billion claim to be issued against RBS Group”.
The GRG - or Global Reconstruction Group - deals with distressed businesses and shot to prominence after a series of allegations were tabled against it in a report by Government advisor Lawrence Tomlinson. The unit is now the subject of several investigations.
Mr Mitchell said Simon Twigden, and Peter Fitzpatrick, partners at Enyo Law, have been instructed to lead a legal team for the Business Action Group. Lord Pannick QC and Andrew Hunter QC of Blackstone Chambers have been retained as leading counsel.
Enyo is also representing the Libyan Investment Authority in a $1bn lawsuit against Goldman Sachs over the bank’s work for the sovereign wealth fund when it was under the control of the Ghadaffi regime.
Mr Mitchell has been a thorn in the side of RBS for some time, memorably raising his concerns about the activities of the GRG at the bank’s 2012 annual meeting in Edinburgh.
RBS chief executive Ross McEwan has admitted that Mr Tomlinson’s allegations against GRG have damaged the reputation of RBS. But he stated last November that the bank had not received evidence of a systematic effort to make money from customers by pushing into the GRG.
An RBS spokesperson said: "These are serious allegations that have done damage to RBS's reputation and the independent review by Clifford Chance we have commissioned will examine these.
"It is important to note that the most serious allegation that has been made is that RBS conducted a 'systematic' effort to profit on the back of our customers when they were in financial distress. We do not believe that this is the case and no evidence has been provided for that allegation to the bank."Reuse content