Resort shareholders win compensation

Small shareholders who lost out when Resort Hotels collapsed in 1994 have won £5m in compensation, it has emerged.

The group of 244 shareholders battled for seven years to win the out-of-court settlement from Resort's accountants, Coopers & Lybrand (now part of PricewaterhouseCoopers).

The Resort Hotels Shareholders'Action Group won £5m plus costs in April after claiming professional negligence. It revealed the figure this week after announcing that the action group had been dissolved.

John Bancroft, chairman of the action group said this week: "The small shareholder is always at a significant disadvantage to the institutions of the City who have sources of information and influence simply not open to the individual.

"In this case, the individual shareholders fought back. The successful result shows that with determination and dedication the small shareholder can achieve recompense against professional advisors for their negligence."

PricewaterhouseCoopers declined to comment.