Another group of investors is threatening legal action against the administrators of the collapsed Woodford Equity Income Fund.
Law firm Harcus Parker has begun accepting registrations for a group action against Link Fund Solutions, the authorised corporate director (ACD) of the fund which failed in June 2019, trapping just over £3 billion in investor money.
The claim rests on the idea that Link failed on its obligation to supervise fund managers Woodford Investment Management and ensure investors could redeem their investments on request.
The law firm said it estimated up to 300,000 clients had been affected by the saga, which led to the downfall of prominent fund manager Neil Woodford.
Mr Woodford had allowed too many un-quoted and illiquid assets onto the fund’s books, which meant it was unable to meet redemption requests when investors began to panic and withdraw money in early 2019. More than £500 million was withdrawn in the first five months of 2019.
The role of a number of other organisations – including Hargreaves Lansdown which promoted the fund on its buy lists, and the Financial Conduct Authority – in the fund’s collapse has also been scrutinised by lawyers and Parliament. Hargreaves Lansdown is facing at least two separate threats of legal action...