In The Royal Bank of Scotland Plc v Highland Financial Partners LP and others [2010] EWHC 3119 (Comm) (07 December 2010), the High Court held that when a CDO was dismantled and the underlying assets valued for sale, The Royal Bank of Scotland could not rely on a sham "bids wanted in competition" process to set the prices for loans that it never intended to sell.

NOTE ADDED 01.05.13: This decision has been set aside by the Court of Appeal in The Royal Bank of Scotland plc v Highland Financial Partners LP and others [2013] EWCA Civ 328 (11 April 2013) because it was obtained by fraud and concealment on the part of the bank's key witness. In setting aside the judgment, the Court of Appeal did not consider that the High Court had erred in law. For more information, see Legal update, Court of Appeal overturns judgments obtained by fraud.