NEW YORK, Jan. 27, 2009 (GLOBE NEWSWIRE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of The Royal Bank of Scotland Group PLC ("RBS" or the "Company") (NYSE:RBS) American Depository Shares ("ADS's") pursuant and/or traceable to a false and misleading registration statement and prospectus issued in connection with the Company's June 2007 initial public offering of Non-cumulative Dollar Preference Shares, Series S (the "Offering").
RBS, certain of its officers and directors, and the investment banks which underwrote the Offering are charged with violations of the Securities Act of 1933. Specifically, the Complaint alleges that defendants consummated the Offering pursuant to a false and misleading Registration Statement which omitted numerous facts, including: (a) that defendants' portfolio of debt securities were impaired to a much larger extent than the Company had disclosed; (b) defendants failed to properly record losses for impaired assets; (c) the Company's internal controls were inadequate to prevent the Company from improperly reporting its debt securities; (d) the Company's participation in the acquisition of ABN AMRO would have disastrous results on the Company's capital position and overall operations; and (e) the Company's capital base was not sufficient to withstand the significant deterioration in the subprime market and, as a result, RBS would be forced to raise significant amounts of additional capital.
RBS ultimately announced huge multi-billion pound impairment charges associated with its exposure to debt securities, including mortgage-related securities tied to the U.S. real estate markets, causing the price of RBS's ADSs issued in the Offering to substantially decline.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired RBS Series S ADSs pursuant and/or traceable to Registration Statement for the Offering. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at: www.faruqilaw.com
If you purchased RBS Series S ADSs pursuant and/or traceable to Registration Statement for the Offering, you may, not later than March 13, 2009, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
Anthony Vozzolo, Esq.
Faruqi & Faruqi, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Telephone: (877) 247-4292 or (212) 983-9330
E-mail: Avozzolo@faruqilaw.com
CONTACT: Faruqi & Faruqi, LLP
(877) 247-4292
