Insurance firms controlled by Lloyds lodged a
Its lawyers will argue that RBS (up 3.4p to 330.5p) played down the parlous state of its finances in the rights issue prospectus.
Those who bought into the cash call at
While the wider Lloyds group (down 0.33p to 74.34p) is not suing RBS, nine of its insurance businesses including Scottish Widows and Clerical Medical are joining the action.
Investment managers are thought to have been aware of a legal opinion which suggested that institutions could themselves face legal action from their own investors if they failed to join a suit that later proved successful.
'The management in the relevant insurance businesses gave careful consideration as to whether it was in the interests of policyholders to join the legal proceedings and decided that it was in their best interests to do so,' said a Scottish Widows spokesman.
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