020 7650 1200

Leigh Day receives over 500 enquiries from Woodford investors in Hargreaves Lansdown claim

Law firm Leigh Day has received over 500 enquiries from investors less than two weeks after announcing it is investigating a potential legal claim against Hargreaves Lansdown on behalf of investors who have lost money following the collapse of Woodford Investment Management.

Posted on 30 October 2019

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 are investigating whether Hargreaves Lansdown misrepresented the health of the Woodford Equity Income Fund whilst continuing to recommend it, resulting in significant losses for their clients.
Bozena Michalowska-Howells, head of the consumer law team at Leigh Day who is leading the case alongside solicitor Kamran Vojdani, 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 not least 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 with Woodford  its concerns about the liquidity of the Equity Income Fund.
Bozena, added:

“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.”
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) and are aiming to help those 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 that they have suffered.