You are here: Home - Investing - Experienced Investor - News -

Law firm receives more than 500 enquiries from Woodford investors

Written by: Emma Lunn
Leigh Day is investigating a potential legal claim against Hargreaves Lansdown on behalf of investors who lost money following the collapse of Woodford Investment Management.

Leigh Day has received more than 500 enquiries from people who invested in Woodford via investment platform Hargreaves Lansdown less than two weeks after the law firm announced it was considering pursuing a case.

The consumer law team at Leigh Day believe that Hargreaves Lansdown either knew or should have known that Woodford Funds, in particular the Woodford Equity Income Fund, were in trouble.

The team is investigating whether Hargreaves Lansdown misrepresented the health of the Woodford Equity Income Fund whilst continuing to recommend it, resulting in significant losses for the firm’s clients.

Bozena Michalowska-Howells, head of the consumer law team at Leigh Day, said: “Many of the investors who have contacted Leigh Day have together several million pounds locked in the suspended Woodford Funds. They are very angry that they may have been misled by Hargreaves Lansdown and that significant parts of their life savings and pensions have been lost.

“Some are particularly aggrieved because they raised concerns about the fund with Hargreaves Lansdown financial advisors but were told that Woodford remained a sound investment and were persuaded not to withdraw from the fund.”

The relationship between Hargreaves Lansdown and the Woodford Investment Management has been called into question because Hargreaves Lansdown upgraded and continued to include the Woodford Equity Income Fund in its Wealth 50 list of recommended funds, up until the fund was suspended in June 2019.

At the same time, reports suggest that since November 2017 Hargreaves Lansdown had raised concerns about the liquidity of the Equity Income Fund with Woodford Investment Management.

“The more we look at this the stronger our conviction becomes to take this forward. We believe that Hargreaves Lansdown’s continued promotion of Woodford Funds showed a cynical disregard for their customers whose life savings and pensions have been put at risk,” said Bozena.

The consumer law team at Leigh Day are looking at a claim on behalf of investors in all three of the Woodford Funds: Equity Income, Income Focus and Patient Capital.

It is aiming to help Hargreaves Lansdown customers who followed Hargreaves Lansdown advice and recommendations, or used Hargreaves Lansdown portfolio management service, to recover their lost investment plus compensation for the distress and inconvenience suffered.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week