In the latest signal of the increasing significance of collective investor actions outside of the U.S., on December 5, 2016, Royal Bank of Scotland agreed to pay £800 million ($1 billion) in a settlement with three of the five investor claimant groups that had sued the bank in the U.K. for alleged misrepresentations in connection with its £12 billion pound fundraising effort just months before the British government bailed out the bank. The case will go forward as to the remaining claimant groups, with whom the bank will now attempt to reach a settlement. If the bank is unable to settle with the remaining claimant groups, the case could proceed to trial in March 2017. The partial settlement is by far the largest collective investor action recovery in the U.K. RBS’s December 5, 2016 SEC filing to which its press release announcing the partial settlement is attached can be found here. A December 5, 2016 Reuters article describing the settlement can be found here.
Continue Reading RBS Reaches $1 Billion Partial Settlement of Credit Crisis-Related Collective Investor Action
Law Firm Organizes U.K. Lawsuit Against Tesco, Financed by Litigation Funding Firm
After U.K.-based Tesco PLC’s announcements of accounting “irregularities” and the subsequent departure of the company’s Board chair, investor lawsuits soon followed. But as discussed here, these lawsuits were filed in the United States, on behalf of investors who had purchased American Depositary Receipts in the United States. In light of the U.S. Supreme Court’s