Railtrack investors to sue Government

STEPHEN BYERS acted 'maliciously and recklessly' in his decision to put Railtrack into administration, according to top legal opinion which gives the green light to shareholders' compensation claims against the Government.

Less than 48 hours after Byers left his job as Transport Secretary, an action group of Railtrack investors said they would pursue the Government through the courts for billions and are determined to put Byers on the witness stand to explain why he pulled the plug on the company last October.

According to legal opinion from Michael Crystal, one of Britain's leading QCs who acted for Maxwell pensioners and BCCI creditors during scandals in the 1990s, Railtrack shareholders not only have a strong legal case but also have claims for restitutionary and exemplary damages.

Restitutionary damages cover not just the loss of shareholders but take into account the potential gain of the wrongdoer, while exemplary damages further penalises the wrongdoer for his actions.

Crystal's team of lawyers acting for the Railtrack Private Shareholders' Action Group, representing 22,000 small investors, say there is case against Byers of misfeasance. David Greene, a solicitor advising the group, has called for a meeting with Byers' successor Alistair Darling to reopen a dialogue with Government closed by Byers in the winter.