RBS says no plans to settle on 2008 rights issue lawsuits

LONDON Fri May 2, 2014 3:32am EDT

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LONDON May 2 (Reuters) - State-backed Royal Bank of Scotland said it does not intend to settle early with investors who claim they were misled over its 12 billion pound ($20.27 billion) rights issue six years ago and are suing it for billions of pounds.

Hundreds of investors, including some of the bank's biggest institutional investors, claim they were misled by RBS over its massive rights issue in 2008, raising the prospect of a high profile fight in court next year.

"We understand their issues, but we believe we have strong defences to the claims and that is why we intend to defend these vigorously. That's the reason why these things will be set out in court rather than in an early settlement, we have a good defence on this," RBS Chief Executive Ross McEwan said on a conference call on Friday after reporting a jump in first quarter results. ($1 = 0.5919 British Pounds) (Reporting by Matt Scuffham and Steve Slater)

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