The UK Individual Shareholders Society (ShareSoc) has said that more than 500,000 of those who invested in the Woodford Equity Income fund (WEIF) may be able to recover "significant losses" as litigation firm Leigh Day has become the first to reach funding and claimant costs insurance agreements.

ShareSoc announced in November 2020 that it was endorsing law firm Leigh Day's claim, backed by its own Woodford Campaign, the aim of which is to help investors seek compensation for their losses.

ShareSoc and Woodford Campaign director Cliff Weight said: "This is the first time ShareSoc has ever endorsed a legal claim. We did this only after careful consideration of the many potential claims that have emerged.

"And we are enthused that the Leigh Day claim is now the first to be fully funded and has ensured potential costs to claimants are insured."

The not-for-profit organisation has said it is confident that if the legal action taken by Leigh Day is successful, WEIF investors could get back 70% of their losses.

Weight added that the aim of its own campaign is "not only to increase the likelihood of compensation but also to support affected investors to keep up to date with developments and work together".

The law firm has said it is still inviting clients to join its group claim against Link Fund Solutions, WEIF's authorised corporate director.

Leigh Day stated that it "believes Link breached FCA rules because it allowed WEIF to hold excessive levels of illiquid or difficult-to-sell investments and that this caused investors significant loss."

(First published by our sister title Investment Week)