Former shareholders in nationalised bank Northern Rock have lost a court case in which they had challenged the government's decision on their compensation.
The High Court has ruled against a group of Northern Rock investors who were unhappy with the compensation they were offered by the government.
According to the shareholders, the government had deliberately valued the bank at less than its true worth, meaning their shares were worth nothing. Northern Rock nearly went out of business in 2007 as the credit crunch took hold and was brought completely under control of the state in February last year.
The shareholders believed their shares had been undervalued during this time, which was an infringement of their human rights. The court disagreed, however.
"We have come to the conclusion that the provisions made for the compensation of the shareholders of Northern Rock do not infringe their rights," said Lord Justice Stanley Burnton, one of the two judges who had been conducting the review.
Dennis Grainger, from the Northern Rock Shareholders Action Group, said the ruling "wasn't a complete surprise" and revealed that they would be taking their case to the Court of Appeal.
However, Vince Cable, the Liberal Democrat shadow chancellor, said that while he had sympathy for some of the small shareholders, the case was brought by two hedge funds who now "deserve to lose their shirts".
"They bought Northern Rock shares on the cheap soon after the run on the bank in the hope of making a quick buck. We should not reward such cynical and reckless speculation," he added.
