RBS shareholders secure insurance to pursue £4bn legal claim

RBS shareholders have secured after-the-event legal insurance to enable them to take their £4 billion legal claim against the bank to trial.

The RBS Shareholders Action Group claims misrepresentation over the bank’s controversial £12 billion rights issue in April 2008.

Just six months later the first Government bailout cash was injected into RBS. Investors argue key facts about the bank’s financial state were withheld from them.

The £23.5 million insurance will protect members of the group, from small shareholders to City institutions, against an adverse ruling.

RBS said it will “vigorously” oppose the claim.