London, 10 October 2016: RGL Management Ltd (“RGL”) today confirmed that it has worked with the BBC and BuzzFeed to provide details of wrong-doings by RBS’s GRG division. RGL confirmed today that it will launch a group representative action against RBS in early 2017 on behalf of what is expected to be more than a thousand businesses with an aggregate claim size reaching billions of pounds.
RGL Management Limited (“RGL”) was formed for the purpose of suing the Royal Bank of Scotland Plc in respect of the actions of its so-called Global Restructuring Group (“GRG”). The RGL management team comprises of competent and experienced professionals who are well-placed to prosecute what will be an enormous group representative action. None of the members of the RGL management team are themselves the victims of RBS or GRG and there is a clear focus on commercial returns. With funding in place, RGL can guarantee that businesses which have suffered at RBS’s hands will be able to bring claims at no cost to plaintiffs and with no risk regarding adverse costs.
Humphries Kerstetter LLP and a team of counsel from 3 Hare Court have been engaged by RGL to launch proceedings against RBS, scheduled to commence in early 2017.
The headline claim in the litigation will be that RBS, through GRG, systematically sought to defraud its customers for its own commercial purposes, targeting asset-rich SMEs which it then funnelled into GRG on the basis of a pretext (often invented), hit them with heavy fees, placed them into a manufactured insolvency process and then in many cases obtained their key assets at undervalued rates.
Commenting on the progress of the claim, James Hayward, CEO of RGL Management Ltd, said:
“Many of the victims of GRG have claims that are time-barred. But those claims can be resurrected by virtue of RBS’s concealment of the true nature of GRG’s activities. It will be forcefully argued that insufficient knowledge was publicly available as to the truth of what happened until the 2013 publication of the Tomlinson report. Consequently, limitation ought not to run against these claims until 6 years have expired from November 2013.”
“Although heavy resistance from RBS is expected, there is reason for confidence. The allegations that will unfold in this litigation will be disturbing for the Bank and will continue to cast a shadow over its attempts at reconciliation with its customer base. Further, its major shareholder will have views on whether spending further taxpayer money on defending litigation over the activities of the Bank in the darkest days of the banking crisis is a sensible course of action.”
“The litigation will obtain redress for a substantial body of RBS’s former customers who have been deprived, in most cases, of everything they owned at the hands of a bank they thought was there to help them succeed.”
Comment on the delayed FCA report.
RGL has little expectation that the FCA report will offer any meaningful compensation for victims of GRG. The FCA report will probably apportion some blame to appease critics and say something like “RBS was over rigorous in applying its procedures and may have caused damage in some cases,” but it will stop short of saying there was widespread or systematic criminal or tortious illegality. It may well recommend, or RBS could well of “its own initiative” offer as a “good corporate citizen” some form of lame very restricted “voluntary” compensation scheme which would be more about capping liability than seeking to redress the wrongs done to UK small and medium business owners by RBS.
This report is all about running claimants out of time and we don’t expect any meaningful redress scheme to come out of it.
Commenting on the delay, James Hayward added:
“By continually delaying the release of the S.166 Report it seems that the FCA has been playing a cruel game with the lives of desperate people who are putting off taking legal action until they see if there might be any worthwhile compensation scheme attached to or recommended by the report, with the result that many otherwise meritorious and deserving claims will be time barred.”
Owners of businesses who wish to find out more about RGL’s action should contact RGL’s legal advisers Humphries Kerstetter at: email@example.com.
For more information please contact:
Lawrence Dore: Lawrence.firstname.lastname@example.org
020 7520 9218 / 07958 329309
Sarah Whittam: email@example.com
020 7520 9219 / 07952240340