RADNOR, Pa., Feb. 18, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of The Royal Bank of Scotland Group plc ("RBS" or the "Company") American Depository Shares ("ADS" or "shares"), who purchased or otherwise acquired their shares between October 18, 2007 and January 19, 2009.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com.
The Complaint charges RBS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. RBS is the holding company of one of the world's largest banking and financial services groups. The Complaint alleges that the defendants made materially false and misleading statements concerning the Company's subprime exposure and its acquisition of ABN AMRO Bank N.V. ("ABN AMRO"). Specifically, the defendants failed to disclose that: (1) RBS and its subsidiaries had accumulated significant quantities of subprime assets; (2) RBS's exposure to subprime assets required substantial write-downs; (3) RBS's acquisition of ABN AMRO was failing to generate the benefits touted by RBS and its management; (4) RBS's recorded goodwill for ABN AMRO was substantially impaired and required write-downs; (5) RBS's internal controls were not sound and were inadequate to facilitate proper asset valuation; and (6) RBS's exposure to subprime assets would require the Company to raise significant amounts of capital to remain solvent.
In late 2007, a consortium of banks led by RBS acquired ABN AMRO in a deal valued at approximately $100 billion. However, throughout the acquisition period and following the integration of ABN AMRO's businesses, RBS and its executive officers failed to disclose and made materially false and misleading statements concerning the Company's subprime exposure and its acquisition of ABN AMRO. As the truth about the Company's subprime exposure and its acquisition of ABN AMRO was disclosed to the market, the value of the Company's shares significantly declined. This culminated with a January 19, 2009 announcement that, due to the volume of subprime exposure the Company had taken on between 2005 and 2008 and the failure of the ABN AMRO acquisition to yield the benefits previously touted by RBS and its executives, the Company would report a loss of £28 billion ($41.3 billion) for fiscal year 2008 - the largest loss ever for a British corporation. These disclosures caused the Company's shares to decline over 69 percent in just one day.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit http://www.btkmc.com/.
If you are a member of the class described above, you may, not later than April 19, 2011 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Barroway Topaz Kessler Meltzer & Check, LLP Darren J. Check, Esq. D. Seamus Kaskela, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at info@btkmc.com
Barroway Topaz Kessler Meltzer & Check, LLP
CONTACT: Barroway Topaz Kessler Meltzer & Check, LLP, Darren J. Check,
Esq., D. Seamus Kaskela, Esq., 1-888-299-7706 (toll free) or 1-610-667-7706,
or info@btkmc.com
Web Site: http://www.btkmc.com/
