Murray, Frank & Sailer LLP has filed a class action complaint, in the
United States District Court for the Southern District of New York,
against Royal Bank of Scotland Group plc (“RBS”) (NYSE:RBS), certain of
its officers and directors, and its underwriters, on behalf of a class
of: 1) purchasers or acquirers of RBS Series “Q” 6.75% Preferred stock
pursuant to the May 18, 2006 public offering; and/or 2) purchasers or
acquirers of RBS Series “T” 7.25% Preferred stock pursuant to the
September 20, 2007 public offering.
The complaint alleges that defendants violated Sections 11, 12(a)(2),
and 15 of the Securities Act of 1933 by issuing a materially false and
misleading registration statement, prospectuses, and other documents.
These documents failed to disclose risks that: 1) RBS’s exposure to the
sub-prime mortgage market was understated in violation of Generally
Accepted Accounting Principles (“GAAP”); 2) RBS’s risk control systems
did not function properly; 3) as a result of such exposure, RBS would be
forced to take write-downs; 4) such write-downs would substantially
decrease RBS’s capital levels; and 5) this would force RBS to accept a
bailout by the British government. As these events occurred, the price
of RBS securities plummeted. At the close of the market on January 29,
2008, Series Q Stock closed at $5.44, and Series T Stock closed at
$5.95, a small fraction of their original $25 offering prices.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Murray, Frank & Sailer LLP, a law firm with extensive
experience in prosecuting shareholder lawsuits.
If you are a member of the class described above, you may move the
Court, not later than March 13, 2009, to serve as lead plaintiff for the
class. A Lead Plaintiff is a representative chosen by the Court who acts
on behalf of other class members in directing the litigation. If you
purchased RBS Series Q or Series T preferred stock mentioned above, or
any other RBS securities, and wish to discuss this action, or have any
questions concerning this Notice or your rights or interests with
respect to these matters, please contact us.
Murray, Frank & Sailer LLP
Eva Hromadkova, 212-682-1818
800-497-8076
newcase@murrayfrank.com
www.murrayfrank.com
