The local authority funds hired the ex-prime minister's wife to seek compensation for the ‘massive losses' incurred when Royal Bank of Scotland was bailed out and the share price collapsed. The funds have submitted their case to a New York court.
Peter Murphy, litigation partner at law firm Sacker & Partners, explains the pension funds would not have been prepared to take the banking boss to court unless they were "confident of the merits of the claim".
Murphy added: "The US legal system is an ideal forum for these types of claims. US lawyers act on a ‘no win no fee' basis and plaintiffs do not have to pay for the other side's legal costs even if they lose. It is, of course, also based on US securities' legislation.
"Cherie Booth's involvement in the case is very surprising. Her profile is mainly UK and European human rights law, not US securities legislation. But that is not to say she does not have relevant expertise. Her involvement in the case will certainly add greater public interest to an already high-profile media event."
Council pension funds hire Cherie Booth to get compensation from Royal Bank of Scotland
North Yorkshire Council Pension Fund and Merseyside Council Pension Fund have hired Cherie Booth to sue Royal Bank of Scotland and Sir Fred Goodwin because they claim he assured investors the bank was in good health when it was not.
