NEW YORK (TheStreet) --Shares of Royal Bank of Scotland Group plc (RBS) are down -1.55% to $10.19 on Friday following a Reuters report that said five of Great Britain's biggest investors are going to sue the bank, claiming they were misled over its massive rights issue in 2008.
The five investors, Legal & General, Standard Life, Prudential, Aviva and Universities Superannuation are set to file lawsuits in London on Wednesday.
The companies are seeking $1.68 billion in compensation.
Also today, the bank gave up its attempt to pay its bankers bonuses two times the size of their annual salaries, after the United Kingdom Financial Investments, which manages the Treasury's 81% stake in the bank, told the bank its request would be denied at the next shareholders meeting, as the company is "still in recovery," the BBC reported.
TheStreet Ratings team rates ROYAL BANK OF SCOTLAND GROUP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL BANK OF SCOTLAND GROUP (RBS) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."