West Palm Beach (HedgeCo.Net) – 31 investors are believed to be on board in the lawsuit levied at the British government, headed by Northern Rock’s largest shareholder, SRM Global.
SRM, along with other shareholders of the bank, are ready to challenge the government, regulators, and certain other individuals who they believed were responsible for the bank’s collapse and the nationalisation that followed.
Head of SRM Jon Wood will write to Chancellor Alistair Darling, in what will be the first step for legal review. Darling, along with Prime Minister Gordon Brown, decided to nationalise Northern Rock last month. The result was thousands of shareholders getting essentially nothing in return.
If investors can prove malfeasance, which means that the government officials acted in a corrupt or unlawful manner, then they may have a shot at getting what they think is fair. According to SRM and RAB Captial, the bank’s second largest shareholder, this would be around 4 pounds per share. However, proving malfeasance is extremely difficult to do in Britain.
The UK Shareholders Association is asking smaller shareholders of Northern Rock to donate two pence for every share they hold in the company, to help fund the legal battle. Others lined up in the fight include Legal & General, Schroders, and AP2 among others.
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: [email protected]
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com
