Hundreds of investors who lost money in the Woodford scandal three and a half years ago have said they will join a High Court claim against two key parties involved in the debacle.
Litigation specialist RGL, which issued the claim nine days ago on behalf of 3,200 investors who suffered immeasurably from the suspension and dismemberment of Woodford Equity Income fund, says more than 500 investors have emerged in recent days to join the claim.
RGL’s High Court move, exclusively reported in The Mail on Sunday last week, targets Link Fund Solutions and investment platform Hargreaves Lansdown.
Compensation claim: Hundreds of investors who lost money in the Neil Woodford scandal have said they will join a High Court claim against two key parties involved in the debacle
It believes both failed investors as the £3.8billion Woodford fund imploded, resulting in big investor losses.
RGL says Link failed to look after the interests of the fund’s 300,000 investors as manager Neil Woodford shifted the portfolio from blue chip UK shares and into risky illiquid firms.
As the fund’s authorised corporate director, Link’s duty was to safeguard investors.
As for FTSE100-listed Hargreaves Lansdown, it recommended the fund right up until its suspension in June 2019 despite internal concerns that the portfolio was becoming riskier.
In June 2019, 134,000 clients of Hargreaves Lansdown had direct holdings in Equity Income, and 160,000 had indirect exposure through multi-manager funds run by the platform. After our report, Hargreaves Lansdown chief executive Chris Hill said he would stand down by November 2023.
Last week, founder Peter Hargreaves, its largest shareholder, accused chairwoman Deanna Oppenheimer of overseeing a ‘diabolical’ performance. Shares in Hargreaves Lansdown have fallen more than 50 per cent over the past year.
The Financial Conduct Authority has yet to publish its report into the demise of Equity Income. But it has informed Link it faces a £50million fine and a £306million compensation bill.
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