After months of negotiation, RBS has finally reached a £200 million settlement with investors, who say they were originally duped into providing £12 billion during the financial crisis.
The share offer accepted by the RBS Shareholders Action Group concluded at 82p, compared with the 200-230p price that investors paid in 2008, when RBS mis-sold its financial health during the funding.
This finalises the dispute, meaning the parties will not take this to court, and Fred Goodwin, CEO of RBS between 2001 and 2009, will not appear either.
According to the BBC, a spokesman for the RBS Shareholder Action Group said: "The directors met last night to consider the legal advice and took the decision that this matter will not now go to court." He also declined to comment on whether the consensus to settle was unanimous.
In 2008 RBS was bailed out of its crisis by the taxpayer, at £45 billion. The state still owns over 70% of the bank, while on the other hand selling its last stake in Lloyds bank, which took over HBOS at the time of the crisis after taking £20 billion from the state.
