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<\/div>\nRGL Management\u00a0<\/span>confirmed on Monday it had\u00a0launched\u00a0<\/span>formal proceedings against\u00a0<\/span>the FTSE 100 platform giant to recover losses\u00a0<\/span>suffered by investors following the collapse of the \u00a33.7bn Woodford Equity Income fund.<\/span>\u00a0<\/span><\/p>\n Simultaneously it is pursuing a claim against Link Fund Solutions,\u00a0<\/span>the fund\u2019s authorised corporate director<\/span>, for its role in the fund\u2019s demise.<\/span><\/p>\n T<\/span>he claims will centre around t<\/span>he losses sustained directly\u00a0<\/span>as a result of<\/span> the collapse of Neil Woodford\u2019s fund, since renamed LF Equity Income, <\/span>and also<\/span>\u00a0the \u201closs of opportunity losses\u201d from investors\u00a0<\/span>\u201c<\/span>missing out on alternative\u00a0<\/span>investments<\/span>,\u00a0<\/span>that, in contrast to the WEIF, would have generated positive returns<\/span>,<\/span>\u201d<\/span>\u00a0RGL said<\/span>.<\/span>\u00a0<\/span><\/p>\n The total value of the claim is expected to be at least \u00a3100m but could be worth \u201csignificantly more\u201d.\u00a0<\/span><\/p>\n RGL Management is now the third firm to issue a letter before action (LBA) which is required to trigger the litigation <\/span>process but<\/span>\u00a0is the first\u00a0to\u00a0<\/span>specifically go after\u00a0<\/span>Hargreaves.<\/span> Harcus Parker and Leigh Day, the two other firms to issue LBAs, have gone after Link alone.<\/span><\/span><\/span><\/p>\n RGL CEO James Hayward said bringing a case against both Hargreaves and Link\u00a0\u201coffers the best chance of a full recovery of losses for WEIF investor claimants\u201d.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n T<\/span>he letter before action sent to Hargreaves\u00a0<\/span>by\u00a0<\/span>Wallace<\/span>, RGL\u2019s partner on the Woodford case,<\/span>\u00a0<\/span>alleges\u00a0<\/span>the D2C platform failed to \u201cprovide accurate, adequate and up-to-date information\u201d about the Woodford fund in the lead-up to its suspension<\/span>, the Mail on Sunday<\/em> reported<\/a> this weekend.<\/span>\u00a0<\/span><\/p>\n Hargreaves Lansdown declined to comment but\u00a0<\/span><\/span>Portfolio Adviser\u00a0<\/span><\/span><\/em>understands the D2C giant has received an LBA.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n RGL claims that Hargreaves knew of the fund\u2019s liquidity issues<\/a> as early as November 2017 but continued to promote the fund on its Wealth 50 buy list until its collapse on 3 June 2019.\u00a0<\/span>Around 292,000 Hargreaves customers\u00a0<\/span>had exposure to the fallen fund\u00a0<\/span>directly or indirectly via its multi-manager range.<\/span><\/p>\n RGL\u2019s claim against Link\u00a0relates to its \u201cfailure to appropriately administer and manage\u201d Woodford\u2019s former fund.\u00a0<\/span>As the fund\u2019s ACD it had a legal obligation to ensure the fund operated in accordance with how it was promoted and sold to investors and keep tabs on portfolio liquid<\/span>ity and\u00a0<\/span>diversification<\/span>, RGL claims.\u00a0<\/span>\u00a0<\/span><\/p>\n \u201cI<\/span>t<\/span>\u00a0is clear that both Link and Hargreaves Lansdown have some serious questions to answer,\u201d Hayward said.\u00a0<\/span>\u00a0<\/span><\/p>\n \u201cRGL has extensive expertise in building large and complex legal actions and our legal team has built a very strong case against both parties. We are very confident in the merit of our claims.\u201d<\/span>\u00a0<\/span><\/p>\n RGL claims to\u00a0<\/span>offer the most \u201ccompetitive rates of return\u201d compared with equivalent rival claims. Should its claim be successful it can take up to 25% of client\u2019s winnings including\u00a0<\/span>VAT.\u00a0<\/span>Harcus Parker has said claimants will pay up to 35% of damages including VAT, while Leigh Day<\/span>\u00a0intends to take<\/span>\u00a0<\/span>30%<\/span>\u00a0including VAT.<\/span>\u00a0<\/span><\/p>\n So far over 2,000 investors have signed up to RGL\u2019s claim and the firm\u00a0<\/span>said,<\/span>\u00a0\u201cthe numbers con<\/span>tinue to grow daily\u201d.\u00a0<\/span>\u00a0<\/span><\/p>\n By contrast, Harcus Parker has amassed more than 6,000 clients<\/span>, while Leigh Day is representing 4,000 clients in their respective\u00a0challenges against Link.\u00a0<\/span>\u00a0<\/span><\/p>\n Harcus Parker\u2019s claim against Link appears to be the furthest ahead, having already received a reply\u00a0from Link to its LBA sent\u00a0last July.\u00a0<\/span>\u00a0<\/span><\/p>\n Portfolio Adviser<\/span><\/i><\/a>\u00a0revealed the London litigator hopes to launch its\u00a0multi-million-pound class action before the summer.<\/span>\u00a0<\/span><\/p>\n Leigh Day\u00a0<\/span>sent its LBA to\u00a0<\/span>Link earlier this month<\/span><\/a>\u00a0and\u00a0<\/span>has given the\u00a0<\/span>ACD three months to respond<\/span>.<\/span>\u00a0<\/span><\/p>\n See also: Hargreaves looks set to dodge a bullet as litigators home in on Link over Woodford collapse<\/a><\/strong><\/p>\n <\/p>\n
\nHargreaves Lansdown\u00a0<\/span><\/span>could be taken to court for its continued cheerleading of the Woodford Equity Income fund up until its collapse as it receives its first letter triggering litigation.<\/span><\/span><\/p>\n\u2018It is clear both Hargreaves and Link have some serious questions to answer\u2019<\/h3>\n
RGL claims to offer more \u2018competitive rates of returns\u2019 than rivals<\/h3>\n
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