RBS share price: Lender faces conspiracy class action lawsuit
The Royal Bank of Scotland Group Plc (LON:RBS) faces a class action lawsuit from over 250 companies, The Times has reported. The firms have claimed that the FTSE 100-listed lender’s “turnaround” division damaged or destroyed their businesses.
According to the newspaper, the companies, mostly small and medium sized businesses, accuse RBS of placing them under the control of its Global Restructuring Group (GRG) not in order to help them get back on their feet, but to run them into the ground. As a result RBS was allegedly be able to obtain their assets for next to nothing.
The Times quoted Peter Burgess, who is managing director at Treble B Tyre Services, one of the firms taking part in the lawsuit, as saying: “When I sold part of the business, the bank took the proceeds of the sale and reduced our overdraft facility . . . I thought this was just done to me and didn’t understand why. But I wasn’t the only one.”
The companies have pooled their resources into the RBS GRG Business Action Group which is seeking compensation. The group has approached City firm Enyo Law and Queen’s Counsel members Lord Pannick and Andrew Hunter to make its case. RBS, as well as a part of its senior management body, now faces a looming case of “unlawful means conspiracy action”.
As of 12:40 GMT, RBS shares were trading 1.91 percent up at 374.20p. Despite today’s rally, the stock value of the UK’s biggest taxpayer-owned lender has fallen about seven percent since the start of the year.
According to the Financial Times, as of 28 February, 2015, the consensus forecast amongst 35 polled investment analysts covering Royal Bank of Scotland Group plc has it that investors should hold their position in the company. The median target of the 25 analysts offering 12 month price targets is 380.00p with a low estimate 250.00p and a high estimate of 530.00p.
As of 13:28 GMT, Monday, 02 March, Royal Bank of Scotland Group share price is 374.00p.