LONDON – RBS has reached a £200 million settlement with shareholders who invested in the bank for its £12 billion 2008 rights issue and lost most of their money.
The RBS Shareholders Action Group voted to accept an 82p a share offer, which is significantly less than the 200 to 230p that the investors paid in 2008.
“The directors met last night to consider the legal advice and took the decision that this matter will not now go to court,” said a spokesman for the RBS Shareholder Action Group said in a statement on its website.
The trial had been due to start on May 22 but was adjourned three times to give the bank time to arrange a settlement offer for investors and shareholders.
The move means that Fred Goodwin, the disgraced former RBS chief executive, will not appear in court.
Shares were up nearly 2% in early morning trading, with the payout already having been priced in by shareholders.
Here is the chart at 8.39 a.m. BST (3.39 a.m. ET):