Lawyers have filed a complaint against a company involved in the Neil Woodford investment scandal.
Harcus Parker filed his case yesterday against Link Fund Solutions, which was supposed to oversee Woodford on behalf of savers.
Woodford’s Equity Income fund was suspended in 2019 as investors rushed to get their money back following poor performance.
Scandal: Neil Woodford’s Equity Income fund was suspended in 2019 as investors rush to get their money back following poor performance
Allegations emerged that Woodford was riding close to the wind, investing in smaller, riskier unlisted companies and, in an attempt to dodge city rules to protect savers, dictating how many of those stocks he could hold, he listed their shares on the Guernsey Stock Exchange.
Daniel Kerrigan, at Harcus Parker, said Link was “letting the fund go off the rails”. Eventually, Link shut it down.
But several sales, to return the money to savers, were made at knockdown prices, causing an estimated £1billion in losses to investors. More than £100m of savers’ money is still locked inside.