RBs Rights Issue Shareholder Dispute

Problem 

  • During the financial crisis, RBS raised a large amount of new capital

  • Very shortly after, the share price tumbled and investors lost large sums of money

  • English counsel for a large group of institutional investors sought help from Fideres to identify missing or misleading financial information in the rights-issue prospectus issued by the defendant

 

Solution

  • Fideres cross-referenced information disclosed by the defendant in the rights-issue prospectus with other sources to identify potential inconsistences, missing disclosure and miscategorization of financial liabilities and write-down provisions

  • We identified numerous missing or misleading statements related to RBS’s exposure to subprime loans in the US, conduits, SIVs and other distressed asset classes

 

Result

  • Fideres’s findings featured prominently in the particulars of claim issued by the claimants. These factual findings formed the basis for the litigation, which eventually resulted in a large settlement