RBC Liable To Pay $75.8 Mln: Delaware Chancery Court Opinion

(RTTNews) - A Delaware Chancery Court judge on October 10, 2014 released a liability opinion in which, Royal Bank Of Canada (RY, RY.TO) was mentioned liable to the stockholders of Rural/Metro Corp. and is now liable to pay to the class at $75.8 million representing 83% of the total damages that the class suffered.

Royal Bank Of Canada or RBC is accused of aiding and abetting breaches of fiduciary duty by the board of the victim company. Buy-out of Rural/Metro Corp. by private-equity firm Warburg Pincus LLC for an aggregate amount of $438 million was the root cause of the conviction, according to the Liability Opinion.

Tracis Laster the Delaware court judge, ruled that bankers at RBC Capital Markets misled the ambulance-operator's shareholders about its value to spur a speedy sale and garner fees.