Despite being late May, a snowball-effect is seeing shareholders that were wiped out by the nationalization of Northern Rock join forces in judicial proceedings against the British government. SRM Global, headed by Monaco-based Jon Wood, and the Shareholders Action Group got the ball rolling on May 8 with RAB Capital joining the action eight days later. Now L&G Investment Management has registered its interest in the legal challenges Law Suit. This all comes three months after Northern Rock was taken over.
That time has not been kind to SRM. Launched in mid-2006 with a reported $3 billion, investors told Alternative Reality that the firm’s main fund is now down a whopping 70%. The $150 million or so that SRM lost on Northern Rock looks a long way from being its most pressing problem. Still, its possible (if not likely) that legal action may bring in a few crumbs in compensation from the UK Treasury. This will keep things ticking over in Monaco while investors wait for their three year lock-ups to end in mid-2009.

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