RGL CEO Warns Shareholders of Pending Litigation against CYBG PLC
London, 18 June 2018
Today, following the announcement that Virgin Money Holdings (UK) plc (“Virgin Money”) has accepted the terms of the offer to be acquired by CYBG PLC (“CYBG”), CEO of RGL Management, James Hayward, has issued the following statement:
“While RGL supports free competition in the banking sector, we are concerned that Virgin Money shareholders are not aware of the pending major litigation against CYBG, which could well significantly impact the value of the shares they are due to receive under this deal.
RGL, which represents hundreds of UK businesses damaged and destroyed by the actions of CYBG, is in the process of bringing a claim against the bank. We expect to issue our claim in the coming months.”
RGL Management Limited (“RGL”) was set up by James Hayward and the team in 2016 to finally provide small business owners with the ability to stand up to banks and seek compensation via the courts. RGL initiates, builds and prosecutes large, complex, multi-party commercial actions, typically against banks on behalf of SME claimants. RGL is the only claims management group running large complicated claims against banks registered with the Ministry of Justice and regulated by the Financial Conduct Authority.
RGL is led by an experienced team with professional backgrounds in law, investment banking, accounting and business management, including Simon Davenport KC from 3 Hare Court Chambers. This allows members of our actions to fight banks with a world class team on their side, thus evening the playing field.
The RGL team is currently engaged in two major actions: representing SME’s affected by the actions of RBS Global Restructuring Group and SME’s harmed by Clydesdale Bank and its former parent company, National Australia Bank (“NAB”).
“Tailored Business Loan” (“TBL”) was the term used to refer to a brand of over 11,000 fixed and variable rate loans made to Clydesdale and Yorkshire Bank customers between 2001 and 2012. National Australia Bank was the parent company of these banks at the time. More than 8,000 of these TBLs were fixed rate TBLs which purportedly contained embedded or hidden swaps which were not disclosed to customers who thought they were entering into a simple fixed rate loan. The swap or hedging element was similar to that of a standalone interest rate hedging product, in particular, through the purported hedge Clydesdale sought to charge disproportionate and crippling break costs in the event that customers wanted to exit the loan early and also had the effect of locking them into higher interest rates and higher bank margins as interest rates fell.