LONDON, May 29 (Reuters) - A group representing Royal Bank of Scotland investors has accepted an out-of-court deal to settle a lawsuit that was set to call disgraced former CEO Fred Goodwin to account over a 12 billion pound ($15 billion) cash call in 2008.
Organisers of the RBoS Shareholder Action Group, that had vowed to see the bank and its former bosses in court, have told their members they will accept last week’s revised, out-of-court offer after days of intense talks delayed a long-awaited trial.
“Having carefully considered the merits of the current offer ... we have decided to accept the offer of 82 pence per share on behalf of our membership,” the action group said in a letter dated May 27 that was published on Monday.
“This is a decision which is fully supported by our legal advisers,” it added, acknowledging that some of its claimants, who had been holding out for more, might be surprised.
The settlement is worth around 200 million pounds ($257 million) in total.
A formal announcement on behalf of the group, which includes around 9,000 retail and 20 institutional investors and has been beset by internal wrangles, changing legal teams and questions over its funding and management structure, is expected later on Monday or Tuesday.
RBS declined to comment.
$1 = 0.7786 pounds Reporting by Andrew MacAskill and Lawrence White; Editing by Mark Potter