RBS, Underwriters Pillory Shareholder Subprime Claims

Law360, New York (October 27, 2009, 8:07 PM EDT) -- Royal Bank of Scotland Group PLC, underwriters for the bank’s share offerings and individual defendants have lambasted a consolidated shareholder complaint they say opportunistically alleges fraud in the aftermath of the financial crisis.

On Friday the various defendants urged Judge Deborah A. Batts of the U.S. District Court for the Southern District of New York to do away with the suit, which they said lamely asserts “fraud in hindsight” and baselessly accuses the defendants of concealing RBS’ exposure to mortgage-backed securities.

The bank, now 70 percent...
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