RBS wins court dismissal
RBS won a U.S. court ruling that dismisses class-action claims from pension funds that had shares in the UK’s largest government-owned bank and were made to suffer huge losses throughout the financial crisis.
On the 11th of January in a Manhattan court, District Judge Deborah Batts decided that claims that arose from sales of RBS’ so-called ordinary shares were invalid because the securities weren’t traded on American exchanges. The ruling left claims by a group of investors that represents purchasers of RBS’s shares remaining intact.
Speaking to the press after announcement of the ruling, Michael Strachan, who is a spokesman for RBS, told how the company welcomed Judge Batts’ decision to throw out and dismiss the claims, adding that the Edinburgh based-outfit will continue to vigorously defend itself against the remaining claims.
RBS, whose losses in 2008 meant that the UK government had to bail it out with an emergency package totalling £45.5 bn, benefitted during a case and following ruling last year that put limits on the reach of American securities laws and in turn narrowed who is able to sue foreign banks on US soil.
Last week’s ruling dismissed the claims by pension funds based in the states of Massachusetts and Mississippi. Between them, they made a 271-page complaint back in July 2009 that accused RBS of misleading its investors about risks from subprime debt as well as losses from its acquisition of ABN Amro.