Dozens of SMEs are taking RBS to court, claiming that the banking giant’s GSG arm drove them to bankruptcy in a push to increase its own profits.
Forced Into Bankruptcy
Currently, 50 SMEs are launching claims against RBS through RGL Management, which has been formed to make claims against RBS regarding the actions of its defunct under the Global 
Restructuring Group. But it’s predicted that more claimant may come forward in the future.
The SMEs are claiming over £1bn against GRG, which was set up to help struggling small businesses in 2013 – but, its alleged, deliberately bankrupted businesses so that it could claim their property. The Financial Conduct Authority is due to publish its report into the GRG and these allegations shortly, following their investigation into accusations made against GRG by government adviser Lawrence Tomlinson.
Strong Representation
The claimants have financial backing that will be used by RGL to gather evidence for their claim and legal representation from top lawyers Humphries Kerstetter, specialists in high stakes commercial dispute resolution who have acted for Tesco and WH Smith against Visa and Mastercard.
James Hayward, chief executive of RGL, told the Guardian: “We believe this has the potential to be a huge claim,” said. “Single businesses within our group have losses of tens of millions of pounds and thousands of businesses suffered as a result of GRG’s actions. The rate at which we are being contacted by businesses suggests our claim will be very significant.”
Responding to the news, an RBS spokesperson said: “We believe we have a strong case and will defend these claims vigorously.”
RGL are expecting a forceful defence from RBS but they are not cowed, and are seeking more clients with a claim to join them before their courtroom battle.
“This is about making people realise that there is a vehicle through which they can claim,” said Mr Hayward. “We are funded, we have lawyers ready, we’re investigating and processing data and if people think they have an issue they should come and talk to us.”