Notes 4. Litigation, investigations and reviews RBS and certain members of the Group are party to legal proceedings and the subject of investigation and other regulatory and governmental action (“Matters”) in the United Kingdom (UK), the United States (US), the European Union (EU) and other jurisdictions. Note 31 on the RBS 2016 Annual Report and Accounts, issued on 24 February 2017 and available at rbs.com/results (“Note 31”), discusses the Matters in which RBS is currently involved and developments to those matters. Other than the Matters discussed in Note 31, no member of the Group is or has been involved in governmental, legal, or regulatory proceedings (including those which are pending or threatened) that are expected to be material, individually or in aggregate. Recent developments in the Matters identified in Note 31 which have occurred since the Q3 2016 results were issued on 28 October 2016, include, but are not limited to, those set out below. UK 2008 rights issue shareholder litigation As previously disclosed, claims have been issued against RBSG in the High Court of Justice of England and Wales alleging that untrue and misleading statements and/or improper omissions, in breach of the Financial Services and Markets Act 2000, were made in connection with the rights issue announced by RBS on 22 April 2008. In December 2016 RBS concluded full and final settlements with four of the five shareholder groups representing 78% of the claims by value. The maximum settlement figure of £800 million is covered by existing RBS provisions and that total figure assumes that agreement is reached with all groups, is split proportionally between each, and is subject to validation of claims. Should the remaining group’s claim not be settled, RBS will continue to defend it. Damages have not yet been quantified. The court timetable provides that a trial of the preliminary issue of whether the rights issue prospectus contained untrue and misleading statements and/or improper omissions will commence in May 2017. In the event that the court makes such a finding, further trial(s) will be required to consider whether any such statements and/or omissions caused loss and, if so, the quantum of that loss. RMBS-related litigation and investigations in the US As previously disclosed, RBS companies are defendants in a purported RMBS class action entitled New Jersey Carpenters Health Fund v. Novastar Mortgage Inc. et al., which remains pending in the United States District Court for the Southern District of New York. RBS has reached an agreement in principle to settle this matter, subject to documentation and court approval. The amount of the settlement is covered by an existing provision. In Q4 2016, a further £3.1 billion ($4.2 billion) provision was taken in respect of various RMBS-related litigation and investigations. As at 31 December 2016, the total aggregate of provisions in relation to certain of the RMBS litigation (set out under “Litigation” in Note 31) and RMBS and other securitised products investigations (set out under “Investigations and reviews” in Note 31) is £6.8 billion ($8.3 billion). The duration and outcome of these investigations and litigation matters remain uncertain, including in respect of whether settlements for all or any of such matters may be reached. Further substantial provisions and costs may be recognised and, depending on the final outcome, other adverse consequences may occur. 57 RBS – Annual results 2016