A total of 21 financial institutions, including a number of UK pension funds, have demanded full compensation from the Royal Bank of Scotland (RBS) over the Rights Issue of April 2008 in which the bank asked shareholders for an extra £12bn to shore up its finances.

In their claim, the claimants allege that “the Prospectus on which the Rights issue of April 2008 was based was defective in that it contained material misstatements and omissions”. The image of the bank was portrayed as being in a state of financial good health and stability, but the claimants argue that had the truth been known, the take up of shares under the Rights issue would have been severely impacted.

Stewarts Law, which is acting on behalf of the claimants, has not put a value on the claim but industry figures believe that it could be more than £200m.

The company’s head of commercial litigation Clive Zietman commented: “Unless the matter can be resolved amicably, the claimants intend to pursue this litigation vigorously and through to trial in order to seek appropriate redress from the court.”

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