Fred Goodwin's injunction prevented him being identified as a banker
Disgraced former RBS boss Fred Goodwin may miss out on his day in court if the bank strikes a deal with its shareholders REUTERS

RBS shareholders, who claim they were misled by the bank ahead of its taxpayer bailout, have been granted a second adjourned day in court as they close in on a settlement.

Mr Justice Hildyard at London's High Court allowed a second 24-hour adjournment – after the case was dramatically halted yesterday morning (22 May) as the 14-week hearing was set to begin. This came because just hours before RBS had almost doubled its offer to settle the dispute.

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The adjournments come as disgraced former RBS boss Fred Goodwin and a raft of former executives are set appear as part of a £700m lawsuit brought against the lender by 9,000 retail investors and 18 institutions in The RBS Shareholder Action Group.

The former chief executive Goodwin – who was stripped of his knighthood following the bank's near collapse – is poised to answer questions over the events leading up to the government's £45.5bn bailout in 2008.

RBS shareholders allege that the bank's management duped them into taking part in a calamitous £12bn fundraising in April 2008, just months before the government saved the bank and wiped 90% off the value of its shares.

The state-backed bank is offering shareholders 82p a share, almost double the 43.2p share it had previously tabled, following talks over the weekend, according to the Financial Times. However, investors are understood to want 100p a share.

Claims against RBS

The bank's current chief executive Ross McEwan was personally involved in the settlement talks to avert a high-profile trial that would undoubtedly further damage the bank's reputation.

Jonathan Nash QC, for RBS shareholders said: "The present position is that the majority of claimants have indicated their willingness to accept the latest offer from the defendant.

"There now appears to be a good prospect that within the course of today the remaining claimants, or nearly all, will confirm they will also agree in principle so as to bring a practical end to the proceedings."

Last month current RBS' McEwan agreed to pay three shareholder groups £800m to settle the claims, but thousands of other claimants have held out for a court battle.

Chancellor Philip Hammond said, in April, that the government was prepared to sell its stake in the bank at a loss. The bank is currently 72% owned by the taxpayer.

RBS reported a £7bn annual loss for 2016 in February, its ninth year of losses in a row.

The bank is also yet to settle with the US Department of Justice over claims it mis-sold toxic residential mortgage-backed securities.