RBS says no plans to settle on 2008 rights issue lawsuits

LONDON, May 2 (Reuters) - State-backed Royal Bank ofScotland said it does not intend to settle early withinvestors who claim they were misled over its 12 billion pound($20.27 billion) rights issue six years ago and are suing it forbillions of pounds.

Hundreds of investors, including some of the bank's biggestinstitutional investors, claim they were misled by RBS over itsmassive rights issue in 2008, raising the prospect of a highprofile fight in court next year.

"We understand their issues, but we believe we have strongdefences to the claims and that is why we intend to defend thesevigorously. That's the reason why these things will be set outin court rather than in an early settlement, we have a gooddefence on this," RBS Chief Executive Ross McEwan said on aconference call on Friday after reporting a jump in firstquarter results. ($1 = 0.5919 British Pounds) (Reporting by Matt Scuffham and Steve Slater)