Enyo Law drops one RBS claimant group for another in new GRG claim

Enyo Law has terminated its contract with the RBS-GRG Business Action Group one year after it was instructed as the group’s lawyers.

Enyo has now been instructed by a second group of businesses planning to sue the Scottish bank over its global restructuring group (GRG), which they allege conspired to cause loss to their companies.

A spokesperson for the new claimant group, named RBS GRG Litigation, said recruitment for further claimants has begun and the group would file its claim later this year.

The Lawyer understands the original group has instructed Taylor Wessing to bring a claim over Enyo’s switch to the new group of claimants.

Enyo partner Michael Green is leading for the new set of claimants, instructing the same counsel as he had for the previous group. Green has turned to Blackstone Chambers’ Lord Pannick QC, Andrew Hunter QC and Andrew Scott.

Both groups are planning to bring cases based on an “unlawful means conspiracy” by RBS against its customers. It follows allegations made in the Tomlinson Report in 2014, which claimed the bank had used questionable property valuations through its GRG division to artificially downgrade viable businesses.

An independent review by Clifford Chance commissioned by the bank some months later found “no evidence the bank had systematically defrauded customers”, according to the report.

The serious allegation that RBS GRG defrauded customers is the subject of a number of cases currently in the High Court. Property Alliance Group’s £30m claim against RBS, which will go to trial in June, puts GRG at the centre of its claim, alongside allegations of Libor manipulation and interest rate swaps mis-selling.

When it goes ahead, the RBS GRG Litigation case could involve claimants from hundreds of small medium enterprises (SMEs) that were put into administration by GRG. A claim for damages could be “substantial”, according to a spokesperson for the group.

The claimant group has secured third-party funding for the investigation stage of its claim. A spokesperson added the group was “confident” of raising litigation funding to proceed with a full prosecution.

Prior to a claim being filed, RBS is not understood to have instructed a law firm on this matter. However the bank has turned to Dentons on the Property Alliance Group claim and Herbert Smith Freehills on a major £4bn shareholder claim over its 2008 £12bn rights issue.

The rights issue case, set to go to trial in March 2017, is brought by five separate claimant groups represented by Leon Kaye, Mishcon de Reya, Quinn Emanuel Urquhart & Sullivan, Signature Litigation and Stewarts Law.