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Northern Rock ex-holders are again denied their cash claim
28.07.09
Former shareholders in Northern Rock today failed in their second legal attempt to force the Government to pay them hundreds of millions of pounds compensation after the bank was nationalised two years ago.
The Court of Appeal dismissed the case brought by more than 100,000 small shareholders and two hedge funds for a judicial review of the Government's “zero return” compensation scheme.
The private punters, SRM Global Fund and RAB Special Situations, who between them owned 45% of Northern Rock when it was taken over by the taxpayer, claim that they should be paid as much as 400p a share or a total of £1.8 billion for the company.
But three appeal judges rejected their claim that the compensation scheme had been “only a charade, the settled intention by Government to set a formula which would yield a zero figure for compensation”.
Jon Wood of SRM said they would now seek to appeal to the House of Lords and ultimately the European Court of Human Rights. He said: “The judgment acknowledges the real force of our arguments.”
Reader views (2)
I think the Gov will lose this one in the end.
- Very Very Angry At Paying Tax For Mp'S Expeses, Home Counties
The Goverment should just be fair regarding the appropriate compensation due based upon basic morality.Morality is sadly a quality that is absent throughout all aspects of life within the UK today hence all political parties do not know how to address the worsening state of our country other than to devise marketing campaigns against each other in the hope of seducing potential voters.The Goverment should be aware that some people have long memories and some of those people will be voting in the approaching General Election and we all know how vunerable the current Goverment are !
- Chris Kingwell., Plymouth UK
