2 State Pension Funds Sue RBS Over $123M Loss

The bank eventually announced it was billions of pounds in debt, the majority of which related to its dealings in the U.S. real estate market.

According to the lawsuit, individual plaintiffs lost hundreds of thousands of dollars when the debt was revealed and the stock price plummeted to about $10 a share.

Earlier this year, Prime Minister Gordon Brown scolded RBS for what he said was irresponsible risk-taking on mortgage-related U.S. securities and the takeover of the Dutch bank ABN Amro.

The Royal Bank of Scotland earlier this week named three new senior executives to complete a management shake-up, marking the end of Goodwin's leadership. Goodwin resigned last year.

On Friday, Royal Bank of Scotland reported a first-quarter loss of 857 million pounds ($1.29 billion) as write-offs from the financial crisis increased despite a jump in revenues. The bailed-out bank warned the next two years would be difficult.

The loss compared with a profit of 245 million pounds a year earlier.