RBS Dodges Investors' Suit Over Subprime MBS

Law360, New York (September 5, 2012, 6:55 PM EDT) -- A New York federal judge on Tuesday tossed an investor class action alleging Britain's Royal Bank of Scotland PLC misled investors about its exposure to subprime mortgage-backed securities, finding that the bank's disclosures' were adequate given the pre-financial crisis reality.

U.S. District Judge Deborah A. Batts said the bank, one of the largest financial institutions in the world, was not obligated to disclose its financial holdings in minute detail to its shareholders. Investors who sued in 2009 complained that the bank violated securities laws by understating...
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