ENGLEWOOD CLIFFS, N.J., Feb. 19, 2009 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP has filed a class action lawsuit 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") (NYSE:RBS) American Depository Shares ("ADS") pursuant to and/or traceable to a false and misleading Registration Statement and Prospectus issued in connection with RBS'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 the defendants' portfolio of debt securities were impaired to a much larger extent than RBS had disclosed; (b) defendants failed to properly record losses for impaired assets; (c) RBS's internal controls were inadequate to prevent RBS from improperly reporting its debt securities; (d) RBS's participation in the acquisition of ABN AMRO would have disastrous results on RBS's capital position and overall operations; and (e) RBS'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 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 ADS issued in the Offering to substantially decline.
Plaintiff seeks to recover damages on behalf of herself and all other individual and institutional investors who purchased or otherwise acquired RBS Series S ADS pursuant and/or traceable to the Registration Statement for the Offering. Plaintiff is represented by Gardy & Notis, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you purchased RBS Series S ADS pursuant and/or traceable to the Registration Statement for the Offering, you may, not later than March 13, 2009, request that the Court appoint you as lead plaintiff for the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation, and you must meet certain legal requirements to serve as a lead plaintiff.
For more information regarding the lawsuit, or to obtain a copy of the complaint, please contact plaintiff's counsel, Charles A. Germershausen or Kelly A. Noto at Gardy & Notis, LLP: