Link Fund Solutions is the subject of a new group action in England related to the now infamous Woodford fund failure.
Law firm Leigh Day has served the action after it and another firm, Harcus Parker, had applications for a Group Litigation Order regarding their respective claims dismissed in December. Claimants represented by the firms were then told to serve any claims by January 18. About 20,000 claimants are represented by the firms.
"From our investigations, we believe that Link allowed WEIF to hold excessive illiquid or difficult-to-sell investments, which caused investors significant loss. In doing so, we consider Link breached the FCA Handbook rules and failed to properly carry out the management function of the Woodford Equity Income Fund," Leigh Day's action states.
Acknowledging the action via an ASX statement, Link Group said: "LFS will vigorously defend itself against the proceedings."
There is also a third class action that has been served against Link, representing a further 3200 claimants.
The Woodford Equity Income Fund collapsed in 2019 due to liquidity issues and left over $6 billion of investor funds frozen; Link Fund Solutions was the trustee of the fund.
The legal issues faced by Link have seen Dye and Durham dump plans to acquire the administrator, with the decision made after the UK regulator made clear it could be hit with upwards of $500 million in penalties.