Link investor

NAB Class Action Sworn Enemy Targets Link Group

This case involves approximately 1,345 litigants seeking compensation related to a business loan product gone wrong.

The RGL action against Link is one of three lawsuits brought against the UK subsidiary of the ASX-listed company, Link Fund Solutions.

The other two, launched by law firms Leigh Day and Harcus Parker, reportedly already have some 20,000 investors associated with their shares.

LFS was the supervising manager of star stock picker Neil Woodford’s flagship fund when investors began rushing to exit in mid-2019 amid what turned out to be justified fears over portfolio liquidity. .

RGL estimates that around 300,000 investors were trapped in the Woodford Equity Income Fund when it was permanently closed.

LFS is still in the process of unwinding the illiquid portfolio and has so far returned nearly £2.6bn to investors. Depending on when they invested, WEIF bettors could ultimately lose up to 40% of their pocket.

Class action lawsuits can continue to enroll more plaintiffs over time, so the three litigation groups are now competing to reap disgruntled investors.

RGL claimed that they charge the lowest success fee at 25%. He also touted that he was the only one of the three suits to also target stockbroker Hargreaves Lansdown, who was still recommending Woodford funds shortly before they closed.

Bond and dye & Durham returned to the negotiating table after the merger fell through, with the Canadian company offering $1.27 billion for some pieces of the Australian company. This will not include LFS, which Link bought from Capita in 2017.

Mr. Hayward created RGL in 2015. He treats his lawsuits as a kind of asset: the backers fund RGL’s handling of the case, in exchange for a share of the potential gains. RGL hires attorneys to handle the case, and recruits and screens individual litigants for class actions.

Some observers say the goal of companies like RGL is to pressure defendants into a settlement, rather than incur the cost of a full trial.

In the case against NAB and Virgin Money, both banks resisted this option and dismissed RGL’s claim as “without merit”.