Legal action launched to recover Woodford losses
Neil Woodford: fund collapsed
An action group has launched legal action to recover losses by investors who suffered from the collapse of the Woodford Equity Income Fund.
RGL Management group’s claim is against both Hargreaves Lansdown Asset Management and Link Fund Solutions.
The claims will centre around losses sustained directly as a result of the collapse of the WEIF and also for “loss of opportunity” losses, suffered through missing out on alternative investments that, in contrast to the WEIF, would have generated positive returns.
RGK says investors who join the claim stand to receive the most competitive rates of return compared with any equivalent rival claims.
Upon success, RGL will deduct significantly less, 25% incl. VAT, from its claimants than other firms competing to build claimant groups. This compares to Harcus Parker 42% incl. VAT and Leigh Day 30% incl. VAT.
The WEIF collapsed on 3 June 2019 after being unable to meet investor redemption requests, resulting in billions of pounds of investor losses. Since October 2019, the fund has been in the process of being wound-up.
Link was the Authorised Corporate Director (ACD) of the WEIF. As such, RGL says it had a legal obligation to ensure the fund operated in accordance with how it was promoted and sold to investors, as well as ensuring the ongoing liquidity and diversity of the fund. The claim against Link will relate to its alleged failure to appropriately administer and manage the WEIF.
The RGL Group action will be against both Link and Hargreaves Lansdown. Letters Before Action (LBAs) have now been sent to both parties, marking the start of the formal legal process.
It is believed that more than 300,000 investors have been left stranded in the WEIF. Anyone who invested in the WEIF can register their interest with the RGL Group, irrespective of the amount invested.
Investors in the WEIF can find out more information and register at a dedicated website www.woodfordlitigation.com.
RGL has already registered more than 2,000 investors and the numbers continue to grow daily. The total value of this claim is expected to be in excess of £100m and will probably be significantly more.
RGL has instructed Wallace, a specialist commercial law firm based in central London, led by Alexander Weinberg, partner, to act on behalf of claimants, with Alain Choo-Choy QC of One Essex Court Chambers acting as counsel.
Litigation funding and ATE (after the event insurance) is being put in place to ensure members of the RGL Group’s claim can participate in the action without risk of paying adverse costs. No cost or payment will be required from investors at any point in the claim/litigation process unless and until the case is successful.
James Hayward, CEO, RGL Management, said: “RGL has extensive expertise in building large and complex legal actions and our legal team has built a very strong case against both parties. We are very confident in the merit of our claims.
“We urge anybody who invested in the WEIF, no matter how little, to visit our website and register with us at no financial risk to recover the compensation they are owed.”
Alexander Weinberg. partner at Wallace, said: “We believe bringing an action against both Hargreaves Lansdown and Link offers claimants the best possible chance of a successful outcome. Both defendants have pressing cases to answer and we are very confident in the strength of the legal claims against them.”
Louisa Spice, a claimant, whose family believe they lost £25,000 as a result of the WEIF collapse, said: “The money lost as a result of investing in the WEIF has been a disaster for me and my family.
“Being part of RGL’s claim gives us real hope of recovering our losses and bringing to an end a most stressful period of our lives. I encourage anyone else in a similar situation to join this action to seek justice and fair compensation.”