Hargreaves Lansdown faces legal fight over collapse of Neil Woodford’s flagship fund
Savers who lost £1billion when Neil Woodford’s flagship fund collapsed will soon have the chance to pursue Hargreaves Lansdown for damages.
Thousands who ploughed money into the Woodford Equity Income Fund (WEIF) have been pondering ways to claw back their lost cash.
Now law firm RGL Management is preparing to file a claim within weeks against investment platform Hargreaves Lansdown and Link, which was supposed to supervise Woodford’s management of his funds, the Daily Mail understands.
Failed fund: Neil Woodford (pictured) saw his flagship Woodford Equity Income Fund frozen after a flood of investors tried to pull their money out
The lawsuit comes as pressure on parties involved in the Woodford scandal is beginning to grow.
The Financial Conduct Authority (FCA) confirmed this week it was ‘likely’ to force Australia-listed Link to pay a £306million penalty to WEIF investors.
This is the first time that the FCA has hinted it will penalise firms over the Woodford scandal, and said it was still open to ordering ‘other parties’ to pay the redress to customers.
But in a move likely to infuriate Woodford victims, Link said yesterday it would consider challenging the regulator’s fine through the courts if necessary.
The FCA’s probe into Woodford’s downfall has also been examining the role of Hargreaves Lansdown, which recommended WEIF to investors right up until the fund’s suspension in June 2019, and Woodford himself.
The FCA declined to comment on whether either of these parties might be penalised.
Hargreaves Lansdown has denied any wrongdoing.
WEIF was frozen by Link after a flood of investors tried to pull their money out, following a run of poor performance.