The Investors’ Chronicle have published a long article today. https://www.investorschronicle.co.uk/news/2020/12/30/misplaced-trust/. We understand the Investors’ Chronicle has 30,000 readers.
Most of the article describes what happened. The crunchy bit is at the end…..
Five law firms have considered the viability of taking legal action, but which is the best one to turn to? ShareSoc, ever the champion of the private shareholder, has endorsed Leigh Day, who decided that Link was most at fault. The firm says that the case stems from Link breaching the rules of the FCA Handbook and failing to “properly carry out the management function of the [fund]” due to allowing WEIF “to hold excessive levels of illiquid or difficult-to-sell investments, and that this caused investors significant loss”.
Legal remedies can be expensive, so Cliff Weight, a director of ShareSoc, says it was important to find lawyers who would charge no fees unless the claim was successful. Leigh Day would then keep 30 per cent of the settlement, and 70 per cent would be distributed among those who had instructed the firm to act for them. To avoid claimants becoming liable for defendants’ costs if the case is lost, after-the-event insurance has been taken out.
Mr Weight points to another advantage in this sort of arrangement. If they lose, the claimant’s lawyers will have worked for no reward. Lawyers will never take on a case on a no-win-no-fee basis unless they think that the odds of winning are in their favour.
You can join ShareSoc’s Campaign at www.sharesoc.org/campaigns/woodford-campaign.
If you directly owned funds locked into WEIF when it was suspended and wish to instruct Leigh Day to act for you, you can join at https://www.leighday.co.uk/Product-safety-and-consumer-law/Consumer-law/Woodford-group-claim
I wish you a happy and prosperous New Year! ☺ ☺☺
Cliff Weight, Director, ShareSoc