B&B shareholders in damages claim

SHAREHOLDERS at Bradford & Bingley are set to launch a legal case against the bank and its directors to claim damages following the collapse of the mortgage lender, it has been reported.

It is understood that solicitors have been appointed to mount a claim case on behalf of The Bradford & Bingley Rights Issue Action Group, which represents hundreds of shareholders.

Shareholders are angry that the £400m rights issue did not bail out the bank as had been proposed and that a month later B&B’s mortgage operations were nationalised and its savings business was sold to Santander.

It is understood that shareholders believe they were misled and are claiming their money back.