Thousands of shareholders who won a pay-out from Royal Bank of Scotland (RBS) for the mis-sale of shares have been informed that they are unlikely to receive payment before Spring 2018, as reported by Mail Online.
The RBoS Shareholders Action Group represented investors in their fight against Royal Bank of Scotland, after they were sold shares prior to the financial crash of 2008, when RBS directors misrepresented the financial health of the high street bank.
Signature Litigation, who are acting in a legal capacity for the RBoS Shareholders Action Group wrote to shareholders earlier this month to inform them that it would be unlikely that they will receive payment before the Spring.
Investors paid around £2 per share in 2008, but the value dropped shortly after. The British government came to the rescue of the bank which resulted in a £45bn bailout, leaving the Bank taxpayer-backed even until this day.
The Daily Mail feature states, “it (Signature Litigation) also says it has discovered around 90 million ‘phantom shares’ in the claim – higher than an earlier estimate of 73 million. This would reduce payouts as the costs of the action will be spread between fewer shares.
“Directors at the action group deny responsibility for ‘phantom shares’ or any other complications.”
In June 2017, RBS agreed to settle with the action group for £200 million, but after paying out legal costs, only £100 million of this figure will be handed out to claimants. This could potentially be further reduced due to phantom shares.
Seneca Banking have recovered £2.75 million relating to GRG losses and just over £100 million in total compensation for clients. If you or your business have been affected by Royal Bank of Scotland, do not hesitate to get in touch.