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Rock investors to fight on despite courtroom defeat

FORMER shareholders in Northern Rock have vowed to continue their fight to be awarded compensation from the government for the loss of their holdings, after losing a legal battle yesterday.<br /><br />The group of 200,000 small investors, backed by major hedge fund investors SRM Global and RAB Capital, had launched an appeal disputing the High Court&rsquo;s decision that the government had not undervalued the mortgage lender.<br /><br />But a panel of three judges said the government&rsquo;s compensation scheme, under which investors are likely to receive no compensation, reflected the position shareholders would have found themselves in if the bank had not been rescued by the state.<br /><br />SRM Global, which owned 11.5 per cent of Northern Rock, said it was prepared to take its case to the House of Lords, or to the European Court of Human Rights in Strasbourg if necessary.