RBS’s (LON:RBS) ongoing legal battle with investors has been adjourned for 24 hours, after the bank doubled its offer to investors.
Investors had instigated legal action over allegations that the bank misled them over the bank’s financial health in the run-up to the financial crisis. Consequently, they are demanding a settlement of £520 million from the bank and four former directors.
The high court case has been postponed a further 24 hours until Tuesday, as the bank looks to reach a settlement over the case. Should the case not be resolved in time, former chief executive Fred Goodwin is among those set to take to the witness stand. Mr Goodwin announced his resignation back in October of 2008, prior to the bank revealing a loss of £24.1 billion, which constituted the largest loss in UK corporate history.
The bank remains keen to avert the high-profile court case, which was previously scheduled to commence on Monday and continue through until mid-October. The bank reportedly have made a last-minute offer to investors of 82p a share, in a bid to avoid the extensive trial.
RBS has already settled with 87 percent of the claimants involved, after it put aside £800 million back in December to reach an agreement. The majority of claimants agreed to a settlement of 43p per share late last month.
The embattled bank is currently still majority owned by the tax-payer, after receiving a government bail-out back in 2008, during the height of the financial crisis. Chancellor Philip Hammond recently conceded that the government majority stake of 73 percent may have to be sold at a loss.
Last month RBS reported its first quarterly profit since 2015. This was in part aided by an ambitious £2 billion cost-saving drive, in which the bank announced that it would cut around 180 jobs in the UK. The bank has thus far achieved 37 percent of its cost-cutting plan as it looks to turnaround its fortunes.
Shares in RBS are currently down 0.08 percent as of 3.06PM (GMT).