In a letter to shareholders released Monday, the RBoS Shareholders Action Group recommended accepting the deal for 82 pence per share, below its previous damages range of 92 pence per share to 234 pence per share.
The group is the last of five sets of shareholders still pursuing claims that the bank misled investors with its £12 billion rights issue during the 2008 financial crisis, before the £45 billion government bailout wiped out RBS' share price. A trial had been set to begin in late May but was repeatedly postponed after RBS made the 82 pence per share offer on May 20.
Law360UK quotes the shareholder group's letter:
"Until this offer was made, we were not satisfied that previous offers proposed by the bank were close enough to what may be considered an acceptable amount, bearing in mind our legal team's advice as to the true merits of the case.This of course means that Fred Goodwin will not be appearing in court.
In contrast, we did consider that the offer of 82p per share, being almost double that of the bank's previous offer, to be worth serious consideration."