BUSINESS

Judge orders RBC Capital Markets to pay $75 million: Wall Street Journal

10/10/2014 08:26 EDT | Updated 12/10/2014 05:59 EST
RBC Capital Markets LLC says it's considering its options after coming out on the losing end of a U.S. lawsuit and reportedly getting hit with $75.8 million in damages.

The Wall Street Journal is reporting that a Delaware judge has awarded the hefty judgment to former shareholders of ambulance operator Rural/Metro Corp.

The newspaper says the amount is one of the largest damages ruling against a bank over its role as a deal advisor.

The Journal says the court ruled last March that the bank gave the board of Rural/Metro Corp. advice that steered it to sell too cheaply to Warburg Pincus LLC in June 2011.

The newspaper reports that Judge Travis Laster concluded that Rural/Metro was worth more than Warburg was willing to pay, but to get the deal done, RBC revised its valuation downward to make a lower offer appear worth taking.

But the judge also reportedly concluded that RBC was also lobbying Warburg for a role in financing the takeover, which it did reveal to Rural/Metro's board.

RBC Capital said little about Friday's awarding of damages.

"We are reviewing the decision and are considering our options. The process is ongoing so we can not comment further," spokesman Kevin Foster said in an email to The Canadian Press late Friday.