All those affected by LME scandal and Wisdomtree 3X Nickel ETP 3NIL Closure on 21st March 2022

masonic · 21 March 2023 at 8:36AM

Freedommm said:

masonic said:

Freedommm said:

But is there any lawyer that represents retail investors to seek full compensation from Wisdomtree and/or LME ?

I'm sure there are many lawyers who could take up such a case, but they'd need to be instructed by a client or clients. The normal procedure when a group of investors feels wronged by something a firm has done is to form a group and crowdfund the legal action within that group or the wider class of investors. This forum is probably not the best place to find others who invested in this product, because anyone expressing a desire to invest in a leveraged ETF here would likely have been given a reality check. However, there must be at least a small number of others out there (this is not a mainstream investment product, and would be considered unsuitable for retail investors, so there won't be many), it would just be a case of finding them. Alternatively you could seek to be joined to one of the existing legal claims that is ongoing. You would likely need to pay a share of the costs accumulated so far in order to do so.
As this is a moneysaving forum, it probably should be stated that money spent on legal action could well be good money thrown after bad.

How to go about finding those other people, wronged by this matter?

That's the tricky part. Are you a member of any forums or groups where high risk commodity trading strategies are discussed, or any relevant websites or blogs where the owner might be persuaded to cover the issue and share your contact details? You may be able to get some traction through the comments section of articles covering this story. Sites like ADVFN and London South East have bulletin boards related to specific shares. You could try setting up social media accounts in the hope that other investors might find you. I imagine many will have written this off as an investment mistake on their part and moved on, so probably will not be looking to get involved in any litigation, but you might find some who share your feelings about the matter.

I'm aware of several action groups that had been set up in the wake of P2P lending firms going bust in questionable circumstances, but they had the advantage of already having active communities of enthusiasts, and some were able to persuade the administrators of the failed firm to send out an email to all known creditors informing them about the action group. In this case, holders of the leveraged ETC will mostly be hidden behind a nominee if they were trading through an investment platform.