RGL Management, representing the claimants, says the total claim could exceed £200 million, with the average individual claim around £20,000.

WEIF, managed by Hargreaves Lansdown’s once-star stock picker Neil Woodford and Aberdeen Standard Investments, collapsed in 2019 after investors scrambled to withdraw their money due to poorly performing investments and illiquid assets.

Hargreaves Lansdown, the UK’s largest investment platform, continued to recommend the fund until its demise, despite allegedly being aware of its issues, The Guardian reports.

RGL argues that Hargreaves Lansdown should compensate investors for their capital losses and lost investment opportunities. The firm plans to file further claims, potentially reaching 10,000 claimants.

RGL director Michael Green said: “Adding thousands more claimants today to the RGL Group action represents another step closer to holding Hargreaves Lansdown to account for its conduct in relation to the WEIF.”

This lawsuit comes in addition to a £230 million settlement from Link Fund Solutions, the fund’s administrator, which was found to have made critical errors in its oversight.

Hargreaves Lansdown has declined to comment. The investment platform previously rejected all claims made by RGL in 2022, when it filed its first set of claimants.