The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A Royal Bank of Canada sign in downtown Toronto.
A Royal Bank of Canada sign in downtown Toronto.
(MARK BLINCH/REUTERS)

RBC’s U.S. lawsuit boils down to a duty to disclose

If only RBC Capital Markets had fully disclosed all of its actions when advising Rural/Metro Corp. By withholding some facts, the lawsuit against the investment bank looks much more clear cut.

To recap: Royal Bank of Canada’s U.S. investment-banking arm was dinged by a Delaware court this weekend for failing to disclose that it bid to finance Warburg Pincus LLC, the private equity firm that bought Rural/Metro, all while advising Rural/Metro’s board on the acquisition.