Railtrack shareholders in court

RAILTRACK shareholders put the Government on trial this morning in a bid to win £157m compensation for losses following the firm's collapse.

Around 50,000 private shareholders ? dismissed as 'grannies' in internal Whitehall documents ? claim the Government abused its powers when it called time on the operator of Britain's track, stations and signals in October 2001.

Former Transport Secretary Stephen Byers, who quit in 2002 after lying about a departmental row, will be forced to defend his decision to put Railtrack into administration in court.

Ex-Railtrack boss John Robinson and Mr Byers' special adviser Dan Corry will also be hauled into court to give evidence. His other former adviser Jo Moore, who said September 11 was a good day to 'bury bad news' may also be grilled.

Legal experts reckon Railtrack shareholders will be hard pressed to prove allegations that the Government hatched a plan in advance to seize the company's assets as cheaply as possible, a charge it strenuously denies.

The Railtrack Private Shareholders Action Group, which is bringing the class action, has raised £3m and already seen off an attempt by Government QC Jonathan Sumption, the most expensive silk in the country, to price it out of court.

Shareholders also had to force Labour to disclosing 20,000 documents it had wanted to bury in a Whitehall vault. The trial, before Mr Justice Lindsay, is expected to last four weeks. No ruling is expected until the autumn.

Should shareholders prove their claim of 'misfeasance in public office' and breach of human rights, a second trial for damages will follow. They rejected the Government's offer of £2.50 a share compensation, and are seeking an amount closer to the average share price over the three years before the collapse. During that time, Railtrack shares peaked at more than £17.

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