Litigation company RGL Management has bolstered its group action against Hargreaves Lansdown in relation to the collapse of the Woodford Equity Income fund.
The company said it has increased the size of its claimant group by 25% to 8,300, as it announced a final deadline of 30 April for investors wanting to join the claim. The first stage of court proceedings is expected to begin in late May 2025.
The claim against Hargreaves Lansdown is to recover losses suffered by investors as a result of the failure of the Woodford Equity Income fund. RGL said it expects the total claim value to be in excess of £200m, with an average individual claim of £20,000.
See also: Hargreaves Lansdown more than doubles its VCT partnerships
This group legal action is for investor losses sustained as a result of Hargreaves Lansdown’s conduct in continuing to recommend the Woodford Equity Income fund right up to the day of its collapse in June 2019. RGL argued this was despite Hargreaves Lansdown being aware of the fund’s longstanding portfolio diversification and liquidity issues.
As well as the balance of capital losses yet to be recovered, RGL claimants are also claiming damages for the loss of the opportunity of investing in alternative investments that might have generated positive returns.
Redress scheme
The claim comes despite investors beginning to receive redress from Link Fund Solutions’ scheme of arrangement to compensate those trapped in the fund when it was suspended in 2019.
RGL previously described the Link settlement as “derisory”.
See also: Campaigners call for Neil Woodford to forfeit his CBE
Michael Green, director at RGL Management, said: “With those added today we now have in excess of 8,300 claimants who have issued claims against Hargreaves Lansdown, but there remain thousands more who could potentially recoup their significant losses.
“The RGL Group action remains the only route available to WEIF investors seeking to make a full recovery of the losses they suffered.”
Hargreaves Lansdown declined to comment.
This story was written by our sister title, Portfolio Adviser
