The Royal Bank of Scotland Shareholder Action Group (RBOS), representing pensioners and shareholders who have lost money in the RBS 2008 rights issue, have launched a £4bn lawsuit against the bank and former directors Fred Goodwin, Tom McKillop, Johnny Cameron and Guy Whittaker

The £4bn claim comes after 21 financial institutions represented by law firm, Stewarts Law, launched a claim over the Rights Issue of 2008 whereby the bank's financial strength was misrepresented to shareholders who had invested in shares. RBS was later bailed out by the UK government.

A spokesperson for the Action Group which in total represents over 12,000 shareholders said: “Today represents a giant step forward for the many thousands of ordinary people who lost money as the result of inexcusable actions taken by banks and their directors in the financial crisis.

“Now, for the first time, some of these directors will have to answer for their actions in a British Court.”

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