Woodford > LF Equity Income Fund > Class actions

Sorcerer2018

I had a lot of money in Woodford when he first started out by himself, both in Patient Capital and the Equity income, about a year and half before it all collapsed, I looked at all my holdings and my first thoughts where "what the hell is doing?". Changing styles is a big red flag, lack of due diligence, lack of proper research etc. I sold everything at the time. I remember talking here about it, and people told me I was mad to sell and i should stick with it. I am really glad I didn't listen. because I sold the lot, and bought Scottish Mortgage Trust now up 100% for me. So the moral of the story, trust your gut, and never believe anything anybody tells you, especially fund managers, and a little luck helps.

[Deleted User]

dunstonh said:

Some advisers did although it was heavily used by DIY investors thanks largely to promotions from certain platforms.    

Hargreaves Lansdown. 
It didn't happen by accident that a quarter of a million investors got stuck with Woodford funds. HL were literally giving them a platform up to the day they imploded.

kangoora

I wonder when someone will start a class action lawsuit to sue the Racing Posts tipsters for incorrectly forecasting who will win the 3:30 at Epsom? They are 'experts' aren't they?

talexuser

ZingPowZing said:

Hargreaves Lansdown. It didn't happen by accident that a quarter of a million investors got stuck with Woodford funds. HL were literally giving them a platform up to the day they imploded.

And there is something wrong if it hasn't hurt them. Failure should mean losing out to someone better taking business away, not just carrying on because you are so big it doesn't matter.

[Deleted User]

talexuser said:

ZingPowZing said:

Hargreaves Lansdown. It didn't happen by accident that a quarter of a million investors got stuck with Woodford funds. HL were literally giving them a platform up to the day they imploded.

And there is something wrong if it hasn't hurt them. Failure should mean losing out to someone better taking business away, not just carrying on because you are so big it doesn't matter.

Hargreaves Lansdown?
Well, their share price has been pretty rubbish since Woodford collapsed and they appear to have suffered some reputational damage but, as far as liability goes I don't think they're in anyone's sights yet.

talexuser

ZingPowZing said:

Well, their share price has been pretty rubbish since Woodford collapsed 

They declared 11% rise in profits, assets under management up 5%, a 31% increase in dividend, and 190,000 new recent customers two months ago. 

Sterlingtimes

I had an email from Leigh Day today concerning their proposed no-win-no-fee class action. Their FAQs were quite helpful. I have decided to take a chance on Leigh Day since there is no information forthcoming on choosing the ideal firm for a class action. The various firms could join up, in any case, should this reach court. 

Thrugelmir

With the prices that the unlisted stock has been traded at since being sold from the funds. Some questions may well be needed to be directed elsewhere. 

DEdblue1

dunstonh said:

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

Using the same skill they used in picking to invest in Woodford Income in the first place 

Does investor who fails to join the class action miss out on any favourable judgment? 

No.   However, that is really jumping the gun.  It's not as if the underlying asset and high illiquid assets position was unknown years before the event.  Warnings of the high illiquid asset ratio were present years before it failed.  It was also one of the reasons the other Woodford fund was created (as it didn't have the illiquid assets and you had the choice of the two).

I think the only winners here will be the claims companies and solicitors that rake in the money from investors in litigation and draw their salaries and dividends from that money leaving those investors out of pocket and the original Woodford investors no better off.    A fund failure does not automatically mean compensation.

If I sign up with Harcus Parker and they are not successful do I incur any debt at all to them? it says no win, no fee but there are some other costs...can you answer that one please?

dunstonh

DEdblue1 said:

dunstonh said:

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

Using the same skill they used in picking to invest in Woodford Income in the first place 

Does investor who fails to join the class action miss out on any favourable judgment? 

No.   However, that is really jumping the gun.  It's not as if the underlying asset and high illiquid assets position was unknown years before the event.  Warnings of the high illiquid asset ratio were present years before it failed.  It was also one of the reasons the other Woodford fund was created (as it didn't have the illiquid assets and you had the choice of the two).

I think the only winners here will be the claims companies and solicitors that rake in the money from investors in litigation and draw their salaries and dividends from that money leaving those investors out of pocket and the original Woodford investors no better off.    A fund failure does not automatically mean compensation.

If I sign up with Harcus Parker and they are not successful do I incur any debt at all to them? it says no win, no fee but there are some other costs...can you answer that one please?

We cannot guess the terms but its not uncommon for some to get you to sign up for insurance to cover failed cases.  In some cases (with others) the insurance is no mentioned until further down the line leaving you little choice.