Hargreaves Lansdown faces legal fight over collapse of Woodford fund
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Hargreaves Lansdown faces legal battle over collapse of Neil Woodford’s flagship fund
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Savers who lost £1bn when Neil Woodford’s flagship fund collapsed will soon have a chance to sue Hargreaves Lansdown for damages.
Thousands who have plowed money into the Woodford Equity Income Fund (WEIF) have thought about ways to get their lost money back.
Now law firm RGL Management is preparing to file a claim within weeks against investment platform Hargreaves Lansdown and Link, which was supposed to oversee Woodford’s management of its funds, the Daily Mail has understood.
Failed fund: Neil Woodford (pictured) saw his flagship Woodford Equity Income Fund frozen after a flood of investors tried to get their money out
The lawsuit comes as pressure on the parties involved in the Woodford scandal begins to mount.
The Financial Conduct Authority (FCA) confirmed this week it was “likely” to force Australia-listed Link to pay a £306 million fine to WEIF investors.
This is the first time the FCA has hinted it will punish businesses for the Woodford scandal, saying it was still open to ordering “other parties” to pay customers for the story.
But in an effort to infuriate Woodford victims, Link said yesterday it would consider challenging the regulator’s fine through the courts if necessary.
The FCA’s investigation into Woodford’s demise also examined the role of Hargreaves Lansdown, who recommended WEIF to investors until the fund’s suspension in June 2019, and Woodford himself.
The FCA declined to comment on whether any of these parties could be sanctioned.
Hargreaves Lansdown has denied any allegation.
WEIF was frozen by Link after a flood of investors tried to get their money out of it, following a string of bad performances.