Mass., Miss. pension funds suing over loss
JACKSON, Miss. - Mississippi and Massachusetts pension systems are suing to recover $123 million they claim was lost when the Royal Bank of Scotland Group illegally sold 38 million shares of stock without revealing massive debts that nearly made the company collapse.
The lawsuit claims the stock deal violated US security laws.
US District Judge Deborah A. Batts ruled Tuesday that the Mississippi Public Employees' Retirement System and the Massachusetts Pension Reserves Investment Management Board will be co-lead plaintiffs because they lost the most money. The class-action suit was filed in January in the Southern District of New York.
London-based Royal Bank of Scotland is the parent company of Citizens Financial Group, based in Providence.
A spokeswoman said yesterday the bank would defend the lawsuit.