Leigh Day and Harcus Parker team up against Link over Woodford scandal
Leigh Day and Harcus Parker have combined their legal actions against Link Fund Solutions to have a better chance of recouping the losses of thousands of investors burned by the collapse of Neil Woodford’s fund.
On Wednesday, the firms will file a joint application in the High Court for a Group Litigation Order (GLO) against the authorized business executive on behalf of their 2,500 clients.
They expect this to become the largest class action on behalf of individual investors ever brought to the UK courts.
Harcus Parker had filed a multi-million pound complaint against Link on the third anniversary of the suspension of the Woodford Equity Income fund, while Leigh Day launched her own legal action against the ACD last September.
Both companies allege Link mismanaged the £3.6bn fund and failed to maintain appropriate levels of liquidity, which ultimately led to the fund’s collapse. Link denied any wrongdoing and rejected any liability to former Woodford investors.
“Hundreds of thousands of ordinary people have lost significant amounts of their savings by investing in this fund. We contend this is a direct result of Link’s mismanagement,” Leigh Day’s attorney Meriel Hodgson-Teall said.
Although the two pool their resources and will present a single argument, they will maintain separate client lists. So far, Leigh Day has issued claims on behalf of 1,000 investors, while Harcus Parker has issued a claim for 1,500 people.
They will also retain separate fee structures, with Leigh Day agreeing to take 30% of any compensation if the lawsuit is successful, while Harcus Parker’s “no gain, no fee” arrangement is 42%.
The joint application is scheduled to be heard over two days in October.
Daniel Kerrigan, a senior partner at Harcus Parker, said presenting a “united front” would be the most effective way to achieve justice for investors who suffer heavy losses.
“We know that investors have been waiting far too long for compensation and we are confident that by working together, we will bring a positive resolution to our clients as soon as possible, starting with the first hearing in this case in the fall. We invite all investors who have not subscribed to the claim to do so.
Most hopeful claimants in the Woodford case will have seen only part of their money back since the fund began to disappear in October 2019.
Link warned they could wait until 2023 before returning any additional money, as losses continued to mount as Rutherford Health, one of the last remaining holdings in the portfolio, went bankrupt earlier this this month.
Trapped investors also did not get an update from the Financial Conduct Authority on the parties responsible for the collapse of the fund, now called LF Equity Income.
Although a separate company, RGL Management, took legal action against Hargreaves Lansdown, which continued to promote Woodford’s fund on its best buys list until its collapse, there have been no updates. day for over a year.
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