Pension funds have launched a claim against The Royal Bank of Scotland over a rights issue in 2008 when the bank sold shares at £2 per share.

The claimants allege that the prospectus on which the rights issue was based was "defective in that it contained material misstatements and omissions," a statement said.

Stewarts Law will be representing 21 claimants including a number of UK and international financial institutions and pension funds.

Clive Zietman, head of commercial litigation at Stewarts Law, said: "Unless the matter can be resolved amicably, the claimants intend to pursue this litigation vigorously and through to trial in order to seek appropriate redress from the court."

The claimants allege that although the prospectus portrayed that the bank was in good financial health, the reality was very different, and if the truth had been known then the take up of shares under the rights issue would have been "severely impacted".

The claim is based on section 90 of the Financial Services and Markets Act 2000, which states that prospectuses and other documents of this kind must be accurate.

The act gives them the right to compensation for any losses they might have sustained as a result of the defective prospectus.

According to The Telegraph, the Trustees of the Mineworkers' Pension Scheme, the Coal Staff Superannuation Scheme, and the Electricity Pensions Trustees are listed in the claim.

First published 02.04.2013

monique_simpson@wilmington.co.uk