RBS settles landmark lawsuit over 2008 cash call: sources

[June 06, 2017]  LONDON (Reuters) - Royal Bank of Scotland has reached an out-of-court deal to settle a costly and embarrassing lawsuit alleging it misled investors during a 12 billion pound ($16 billion) cash call launched just before its near collapse in 2008, sources said.

Morning commuters rush past a branch of the Royal Bank of Scotland (RBS) in London November 4, 2011. REUTERS/Andrew Winning

Sources familiar with the situation said a majority of shareholders in the group look set to accept an offer after days of intense talks delayed the start of a long-awaited trial.

RBS has offered shareholders 82 pence per share in its latest settlement attempt. The deal will cost the bank roughly 200 million pounds.

The deal draws a line under a five-year lawsuit that was due to call disgraced former CEO Fred Goodwin to testify and has been unprecedented in English legal history for its complexity.

(Reporting By Andrew MacAskill. Editing by Kirstin Ridley)

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