European funds included in RBS class action
July 17 2009, 10:55 amUS — UK and European pension funds will be included as members of a consolidated class action against Royal Bank of Scotland, after a court ruling knocked them out of the running to be co-lead plaintiffs.
The complaint filed yesterday by law firm Cohen Milstein Sellers & Toll include UK schemes Merseyside Pension Fund and North Yorkshire County Council pension fund and Dutch investor MN Services among several other non-US investors.
In May, the Massachusetts Pensions Reserves Investment Management Board (MassPRIM) and the Mississippi Public Employees Retirement System – who were nominated as lead plaintiff in the suit – said they would ask the court to include the European investors in the class actions.
Cohen Milstein Sellers & Toll partners Julie Reiser and Steve Toll said the two US pension funds were nominated as co-lead plaintiffs on behalf of those who invested in RBS ordinary shares, while a the Freeman Group, a group of five individuals, will be the lead plaintiff on behalf of the investors who purchased RBS preferred shares.
They added the suit alleges some members of the RBS board and executive team misrepresented the bank’s exposure to sub-prime and toxic assets as well as the economic consequences of RBS’ acquisition of ABN Amro.
Source: Global Pensions
