leadf
logo-loader
viewHargreaves Lansdown PLC

Hargreaves Lansdown may have 'case to answer' over Woodford says law firm

The Woodford Equity Income fund was gated last June following a rush of investor redemptions and concern about its high level of investment in illiquid holdings

Hargreaves Lansdown PLC -

Hargreaves Lansdown PLC (LON:HL.) could be facing legal action on behalf of investors in the collapsed Woodford Equity Income fund.

The fund's supervisor Link Fund Solutions could also be subject of action, according to law firms. 

Karolina Kupczyk, a group litigation lawyer at Slater and Gordon, said: “We have very carefully considered the facts which have led to investors losing millions of pounds in the Woodford Funds featured in the past on Hargreaves Lansdown’s ‘best buy’ list.

“Having done so, we now believe there’s a case for Hargreaves to answer. We are also actively considering other potential defendants such as Link so that investors stand the best chance of recovering their money.” 

READ: Law firms probe Hargreaves Lansdown as part of Woodford challenge

Law firm Leigh Day said earlier this year that it had been contacted by “more than 2,500 investors” in the former Woodford fund who were seeking compensation.

Slater and Gordon has said it is likely to coordinate with other claimant firms, as seen in other group litigation actions such as against Volkswagen.

The Woodford Equity Income fund was gated in June last year and began to be wound up in October, following a rush of investor redemptions and concern about its high level of investment in illiquid holdings such as unlisted companies.

The law firms previously said they were examining whether Hargreaves Lansdown was aware of the problems at the fund while it continued to promote it as part of its ‘best buy’ list until the fund was suspended.

Quick facts: Hargreaves Lansdown PLC

Price: 1553.5 GBX

LSE:HL.
Market: LSE
Market Cap: £7.37 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

GinsGlobal Managing Director sees Healthcare and Healthcare innovation as...

HANetf and GinsGlobal Index Funds' Managing Director Anthony Ginsberg joined Steve Darling from Proactive to share details about the success of their Healthcare Innovations ETF. Ginsberg discusses how COVID-19 had made a direct impact on that fund, especially in the telemedicine...

2 days, 3 hours ago

2 min read