RBS directors including Fred Goodwin dismiss £3bn shareholder lawsuit Mr Goodwin, along with former chairman Sir Tom McKillop, Johnny Cameron, the former head of RBS investment banking arm, and several other directors, are being sued for £3bn by thousands of investors who lost money as a result of the near collapse of the bank in October 2008. RBS has also been named in the action. The directors are also challenging claims by shareholders that RBS failed to disclose its reliance on Federal Reserve loans, describing the allegations as "simply wrong." "There was no such reliance, and no disclosure required," wrote Herbert Smith. "In effect, your clients" case rests on the inference that because of the liquidity crisis which affected the financial industry as a whole so badly in late 2008, disclosures made by RBS at the time of the rights issue ... must have been incomplete and misleading. But that does not follow at all. It is a classic case of an allegation made with the benefit of hindsight," they wrote. The lawsuit has been brought by the RBS Shareholders" Action Group, which represents 12,300 retail investors, including hundreds of RBS and NatWest staff who owned the bank's shares. Lawyers for the shareholders, Bird & Bird, said the response did not contain anything "unexpected nor any "knock out" points to the allegations." The case is expected to see Mr Goodwin appear before the High Court in London as a witness. If he declines to appear, the action group is expected to issue a summons.