In a statement yesterday (September 28), the firm said: “Link Fund Solutions has become aware that Leigh Day has filed a claim in relation to the LF Equity Income Fund (formerly, the LF Woodford Equity Income Fund).
“Link has not yet been served and will vigorously defend itself against any proceedings.”
On Monday (September 27), Leigh Day said it had issued a claim form on behalf of an initial group of 100 of the fund’s investors, in an attempt to recover their losses from the collapse of the fund in 2019.
The firm said the claim followed a ‘detailed and extensive’ letter before action, and ‘significant’ pre-action correspondence with Link’s lawyers, Clifford Chance.
It added the case has now reached a stage where the investors’ legal team feels it has become necessary to issue proceedings in order to take the matter through trial.
Leigh Day claimed Link was in breach of the rules of the Financial Conduct Authority in the way it monitored and managed the fund, which it said ultimately led to the fund’s collapse.
In its statement today, Link said in its role as authorised corporate director of the Woodford fund, now called the LF Equity Income Fund, a key responsibility was to act in the best interests of all investors in the fund.
A spokesperson added: “Link takes this and its other responsibilities very seriously and considers that it has acted at all times in accordance with applicable rules, as well as in the best interests of all investors, and it will continue to do so.”
Leigh Day said has been instructed by over 11,000 claimants and will be issuing proceedings on a rolling basis for all of its clients.
It is seeking to consolidate the claims under a group litigation order, where the risks, costs and benefits of the group action can be shared by all the claimants on the group action register.