Over half a million investors in the Woodford Equity Income Fund now have a much better chance of recovering significant losses, as the legal move from Leigh Day, backed by ShareSoc’s Woodford Campaign, becomes the first to reach funding and claimant costs insurance agreements.
ShareSoc, the highly influential investors body, believes it’s in the best interests of all those who lost money in the Woodford Equity Income Fund (WEIF) to join both the Leigh Day claim and the linked ShareSoc Woodford Campaign.
Director Cliff Weight articulated ShareSoc’s view:
“We believe the pursuit of compensation in this case benefits all investors, as a successful outcome will lead to higher standards of behaviour in the future.
This is the first time ShareSoc has ever endorsed a legal claim. We did this only after careful consideration of the many potential claims that have emerged. And we are enthused that the Leigh Day claim is now the first to be fully funded and has ensured potential costs to claimants are insured.
Our Woodford campaign aims not only to increase the likelihood of compensation but also to support affected investors to keep up to date with developments and work together.”
ShareSoc has now formally launched its Woodford Campaign and will be working closely with Leigh Day as the claim develops. It is encouraging Woodford Equity Income Fund (WEIF) investors to join the Leigh Day claim, confident that they should incur no costs and if the claim is successful they could get back 70% of their losses.
ShareSoc’s Woodford Campaign objectives are:
- to help Woodford investors seek redress and compensation for their losses
- to ensure that those parties who contributed to those losses through action or inaction are held to account
- to bring about changes in the regulations and regulatory enforcement to ensure this type of scandal does not happen again
What is the Leigh Day initiative
Leigh Day is now formally accepting clients for a group claim on behalf of investors in the Woodford Equity Income Fund (“WEIF”).
WEIF was suspended in June 2019, and its winding-up was announced in October 2019. Leigh Day is bringing the claim against Link Fund Solutions Limited (“Link”). As WEIF’s authorised corporate director, Link is the party responsible for the operation of the fund. Leigh Day believes Link breached FCA rules because it allowed WEIF to hold excessive levels of illiquid or difficult-to-sell investments and that this caused investors significant loss.
The fund’s value decreased notably while it was trading. In addition, from a net asset value of £3.61 billion when WEIF was suspended, so far investors have only had returned a total of £2.45 billion with the remaining assets looking difficult to realise.
Bozena Michalowska-Howells, Head of Consumer Claims at Leigh Day, said:
“In bringing this claim, we hope to provide recourse to the many thousands who suffered loss from investing in the fund. Especially, since so many invested from their pension pots.”
Kamran Vojdani, a solicitor at Leigh Day, added:
“Together with our counsel and expert teams, we are now looking forward to progressing the litigation in earnest.”
Leigh Day is also excited that its claim has received the endorsement of ShareSoc (the UK Individual Shareholders Society), an influential not-for-profit organisation dedicated to supporting individual investors. ShareSoc is both running a Woodford campaign and hopes to also reform financial regulations to ensure this type of scandal does not happen again.
Cliff Weight, ShareSoc Director and Woodford Campaign Director.
ShareSoc, the UK Individual Shareholders Society
ShareSoc is the UK’s largest retail shareholder organisation acting in all areas of the UK stock market with over 7,000 members and climbing. As a not for profit, ShareSoc is dedicated to the support of individual investors (as opposed to institutional investors). We aim to make and keep investors better informed, to improve their investment skills and to represent their best interests We don’t shirk from tackling companies, the Government or other institutions if we think individual shareholders are not being treated fairly. See www.sharesoc.org.
ShareSoc’s Woodford Campaign Page https://www.sharesoc.org/campaigns/woodford-campaign/ gives further details of our Campaign and how Woodford Investors can join it.
Leigh Day’s website at https://www.leighday.co.uk/latest-updates/cases-and-testimonials/cases/woodfordlink-group-claim/ gives further details of their claim and how to join it. https://www.leighday.co.uk/latest-updates/news/2021-news/insurers-back-leigh-days-group-claim-on-behalf-of-woodford-equity-income-fund-investors/ gives further details of claim insurance cover.