Legal battle to win compensation for savers in Woodford’s flagship fund kicks off after crucial insurance and financial backing is secured
A legal battle to win compensation for savers in Neil Woodford’s flagship fund is now under way after crucial insurance and financial backing was secured.
Law firm Leigh Day has spent a year building a case against Link Fund Solutions, which oversaw the £3.6billion Equity Income fund before it was suspended in 2019.
It was frozen after hordes of backers tried to exit – but were unable to receive their money because former star stock picker Woodford had ploughed it into investments that were tied up.
Fight: Law firm Leigh Day has spent a year building a case against Link Fund Solutions, which oversaw Neil Woodford’s £3.6billion Equity Income fund
Around £2.5billion has been returned but investors await another £290m and almost £900m has been lost.
Leigh Day has lined up critical insurance that will protect individuals who take part in the group claim if Link tries to counter-sue.
The case has also received millions of pounds from an unnamed litigation funder.
More than 3,000 people have signed up to the case, which is backed by retail investor association ShareSoc, and a mass marketing campaign will encourage more people to join.
Up to 500,000 people were affected by the Woodford scandal.