A law firm investigating a potential claim against Hargreaves Lansdown over its championing of Neil Woodford says it has been contacted by over 500 clients, including people who say they contacted the platform’s financial advisers over their concerns.
Leigh Day was inundated with enquiries after announcing it was investigating a potential legal claim two weeks ago.
Leigh Day head of consumer law Bozena Michalowska-Howells said the investors collectively have several million pounds locked in the suspended Woodford funds. Woodford Equity Income suspended in June while Income Focus suspended this month, immediately after Woodford announced he was shutting up shop.
Michalowska-Howells is leading the case alongside solicitor Kamran Vojdani.
She said clients “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 advisers but were told that Woodford remained a sound investment and were persuaded not to withdraw from the fund,” she said.
The team is examining a claim on behalf of investors in both Equity Income and Income Focus, which both featured on the Wealth 50, as well as Woodford Patient Capital. The latter did not feature on the Wealth 50, or its predecessor the Wealth 150, as Hargreaves does not include investment trusts on its buy list.
The team is also speaking with investors in the Hargreaves multi-manager range.
“The more we look at this the stronger our conviction becomes to take this forward,” said Michalowska-Howells. “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.”
Rival firm Slater and Gordon is now also investigating group legal action against the platform.
Hargreaves said it did not wish to comment.
