Woodford investors urged to join lawsuit against Hargreaves Lansdown
'Now that claims against Link will likely not be possible, the RGL Group’s claim against Hargreaves Lansdown is the only route for investors to claim the full redress they are owed.'
The company said the lawsuit, which was filed in the High Court in October 2022 on behalf of around 3,000 investors in the fund, is the «only route» to claim «the full redress they are owed».
RGL said that anyone who invested in the former WEIF through the platform can join the claim, adding that it is currently preparing a second claim for thousands more claimants who joined the group.
On Thursday (14 December), Link Fund Solution announced that its redress scheme, which was backed by the Financial Conduct Authority, was approved by an overwhelming majority of investors — 93.7% in number and 96.1% by value — at a meeting on 13 December.
Woodford scheme of arrangement approved
According to the FCA's calculations, investors will be able to get back around 77p to the pound, for a total of up to £230m.
As part of the redress scheme, which is subject to court approval with a hearing scheduled for 18 January 2024, investors will no longer be able to pursue any claims against LFS, its parent or associated companies, or submit claims with the Financial Services Compensation Scheme.
However, RGL argued the redress falls short of recovering all the losses suffered by investors in the former WEIF, and noted that claims against Hargreaves Lansdown can still be brought, regardless of the scheme.
The company added it is now the only claimant group pursuing a «full recovery of losses» against the platform, and has urged investors who registered with Harcus Parker or Leigh Day for claims against LFS to join its suit instead, as long as they invested in
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