Northern Rock investors have accused the Treasury of manufacturing a low valuation for failed bank Northern Rock in order to avoid paying fair compensation.
According to the FT, hedge fund SRM Global and the UK Shareholders Association are planning to fight legislation that will value the Rock as if it were in administration and so render their shares worthless.
The angry investors are planning to launch a judicial review next month to determine if the government acted unlawfully when valuing shareholder pay-outs.
The shareholders believe the Rock's book value means that they should receive between £4 and £5 a share.
Northern Rock was eventually nationalised after the government propped it up with extra liquidity.
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