The first of what could be many legal claims relating to the collapse of the Woodford Equity Income fund is expected to be launched by the end of the year, reports emerged today.
London laywers Harcus Parker are co-ordinating a class action lawsuit and are believed to be ‘further down the track’ than rivals in preparing a case against Link, the firm’s ‘authorised corporate director.’
The legal firm have previously brought claims related to the Arch cru scandal against Link’s predecessor, Capita Financial Mangers.
The fund was closed last year after a redemption request it couldn’t fulfil. Star fund manager Neil Woodford’s reputation was left in tatters and a number of investors are still waiting on receiving what is left of their cash.
Harcus Parker state on their website: “Link, as the Authorised Corporate Director of the Woodford Funds, has made millions in fees charged for adopting responsibility for safeguarding investors and ensuring that the Woodford Fund follows the rules.
“Our clients will allege that it failed adequately to supervise the Woodford Funds. This failure has proved to be catastrophic to those who invested their savings into the Woodford Fund and whose investments were locked into the Woodford Fund at suspension.”
It is understood by the Mail on Sunday that the key element of the claim will be that the firm did not ensure sufficient liquidity and that it had moved away from the objectives of the fund.
A spokesman for the firm told the Mail: It added: ‘The claim is going ahead and we expect to file soon on behalf of several thousand clients. Some 15,000 investors have expressed an interest in supporting the claim, of which 3,000 have gone on to become Harcus clients.”