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Former RBS CEO, ‘Fred the Shred’ avoids trial, for the moment

Paul Hodgson | June 27, 2017

It’s settled, it’s not settled, it’s mostly settled, but not quite. The recent decision by the high court to call off the case that would have forced the former Royal Bank of Scotland CEO Fred Goodwin to give evidence, seems to allow a settlement for the vast majority of outstanding shareholder plaintiffs in the case, but still seems to provide an opportunity for investors not agreeing to the deal to be able to revive proceedings against the bank next month.

The case involves a group of investors who claimed that Goodwin—who was stripped of his knighthood in 2012 and was known as “Fred the Shred” for his ruthless cost-cutting—made false claims about the bank’s financial health in a prospectus calling for investment via a £12 billion cash call on 22 April 2008. Due to start on 22 May, a new offer from RBS saw a series of adjournments to the case. Then Jonathan Nash, the QC for around 9,000 retail investors, part of the RBS Action Group... To get the full story, subscribe now.