The Royal Bank of Scotland has reportedly doubled a settlement offer to thousands of shareholders that are suing the bank and former RBS executives after they invested in the bank before its 2008 rights issue and subsequently lost lots of money.

Sky News reported that RBS proposed an 82 pence-per-share settlement with investors during talks on Sunday. This is more than double that of a previous offer of 40p-per-share and the reportedly new proposed settlement figure comes just hours before the bank heads to High Court for a trial starting on Monday.

The report also said that out of the 27,000 members who were originally part of the RBoS Shareholder Action Group, “roughly 9000 small investors, as well as some institutions, have been determined to press ahead with their claim,” while some settled for just over 40p-a-share.

Sky News also said some investors are holding out for at least 92p-per-share — but this is “just under half of what investors paid” during the rights issue.

RBS declined to comment when contacted by Business Insider, while RBoS Shareholder Action Group had not responded to an email at the time of publication.

In that 2008 rights sale, investors were offered £12 billion in new, additional shares.  Investors who bought them lost over 90% of their money. Look at the stock drop off from 2007:

The 12,000-strong RBS Shareholder Action Group launched a £4 billion lawsuit in 2013 against RBS and former RBS executives Fred Goodwin, Tom McKillop, Johnny Cameron, and Guy Whittaker.  The group accused RBS and the former executives of “misrepresenting the underlying strength of the bank and omitting critical information from the 2008 Rights Issue prospectus.” 

Goodwin is due to make his first public appearance in eight years on June 8 and 9 in a 14-week trial.

NOW WATCH: Trump is reportedly selling his Caribbean estate for $ 28 million — take a look inside

Please enable Javascript to watch this video

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>