By Vikki Graves
Cherie Blair has been hired by two British local authorities to sue the Royal Bank of Scotland through the US Courts. RBS and its entire board of directors, including ex-Chief Executive Sir Fred Goodwin, are named as defendants.
North Yorkshire and Merseyside councils’ pension funds have plummeted in value along with RBS shares. They claim they were falsely assured that the bank was in good health.
The lawsuit, which is open to all European and US investors in RBS, comes just weeks after Ian Hamilton QC was forced to abandon his case against RBS plc in the small claims court.
Hamilton claimed he was misled when he bought 640 RBS shares at £2 each in April 2008. He said the bank had been negligent and knew it was in trouble. Each of his shares is now worth just 20p. But Oban Sheriff Court ruled the case too complex to be heard at a low level.
Mr Hamilton said it would be too expensive for him to take the case further, but continues to campaign online for more small claims actions to be brought against the bank.