Woodford > LF Equity Income Fund > Class actions

There is a number of legal firms recruiting investors in the Woodford LF Equity Income Fund for potential class-actions on no-win no-fees basis.

How would an investor wishing to seek recourse choose from the list of legal firms?

Would each legal firm pursue an individual action or would the cases be co-joined?

Does investor who fails to join the class action miss out on any favourable judgment? 
I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".
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  • csgohan4
    csgohan4 Posts: 10,587
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    edited 29 October 2020 at 3:58PM
    investments all have a risk, more so in these type of funds. You don't get compensation for taking more risk in order to fuel your goal of higher returns. 

    However it's easy in hindsight to spot a bad fund, so not easy at the time
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • itwasntme001
    itwasntme001 Posts: 1,138
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    Can I get compensation even though I sold the fund at a (small) loss before it collapsed?
  • dunstonh
    dunstonh Posts: 115,695
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    Can I get compensation even though I sold the fund at a (small) loss before it collapsed?
    I am not sure if you have posted that in irony or are serious.   So, if you posted in irony, then LOL.   If you posted seriously then no you cant.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • steampowered
    steampowered Posts: 6,176
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    In the UK, you generally have to "opt-in" to litigation like this to benefit from it.

    You could consider poking around the different legal firms. But before signing up make sure you read everything very carefully. You don't want to find yourself in a situation where you have to stump up legal costs as a result of participating in the claim (either your own solicitor's legal costs, or if the case is unsuccessful an order to pay fund's legal costs). 
  • Alexland said:
    csgohan4 said:
    investments all have a risk, more so in these type of funds. You don't get compensation for taking more risk in order to fuel your goal of higher returns. 
    I have sympathy with Woodford investors who feel the published mandate wasn't being followed, the fund name was misleading and the valuations being reported were unrealistic. This was more than just the failure of active management to achieve good returns. However there was enough information in the public domain before the fund failed that an attentive investor should have been aware of all these issues.
    Were these things right? No. Is there liablity? To be determined.
    Thank you, Alexland. The community here may charge me with having been a "silly billy" in investing in Woodford. I accept that charge but I am now hoping for some recourse. Some would suggest that the investor should take paid financial advice but we see here that advisers have also recommended that investors should consider Woodford. Furthermore, it is not solely the little person who has invested but also larger corporate investors and local councils. Attentive investors may or may not have explored the structural nature of the investment.

    For now, I am looking for a little guidance concerning joining a class action.

    The only good thing for me is that some of the assets were turned into cash when the FTSE was at a peak and I retained the cash through the tumbling of the market. My real loss is less than it otherwise would have been.
    I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".
  • itwasntme001
    itwasntme001 Posts: 1,138
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    dunstonh said:
    Can I get compensation even though I sold the fund at a (small) loss before it collapsed?
    I am not sure if you have posted that in irony or are serious.   So, if you posted in irony, then LOL.   If you posted seriously then no you cant.

    I am being serious.
  • Alexland
    Alexland Posts: 9,639
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    I am being serious.
    While you may feel mislead by the mandate + fund name the asset valuations may have helped support your sale price.
  • dunstonh
    dunstonh Posts: 115,695
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    Some would suggest that the investor should take paid financial advice but we see here that advisers have also recommended that investors should consider Woodford. 

    Some advisers did although it was heavily used by DIY investors thanks largely to promotions from certain platforms.    You could well have a case to complain to the adviser if you used one as the data was there and some IFA research companies did give out warnings in 2017 about this fund.  Knowing the underlying assets and carrying out due diligence is a requirement of an adviser.

    Furthermore, it is not solely the little person who has invested but also larger corporate investors and local councils.

    The institutional investors have no excuses.  The should be sacking their advisers and looking to get compensation from them.

    Attentive investors may or may not have explored the structural nature of the investment.

    If they did and they still decided to invest, then it's their own fault.

    If they didn't and invested then it's their own fault.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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