Legal Services
Cliffordchance
Full Credential Description
Link Fund Solutions Limited (LFSL) faced significant challenges related to potential liabilities stemming from the LF Woodford Equity Income Fund (WEIF). The primary issue was the threat of group litigation against LFSL, led by three claimant firms representing over 20,000 Scheme Creditors. This situation necessitated a strategic resolution to mitigate the financial and legal risks associated with these claims. To address these challenges, Clifford Chance advised LFSL on implementing a UK scheme of arrangement. This Scheme was part of a conditional settlement with the Financial Conduct Authority (FCA) and aimed to distribute between £183.5 million and £230 million from a settlement fund to approximately 250,000 Scheme Creditors. In exchange for this financial compensation, the Scheme Creditors agreed to release any claims they might have against LFSL. This arrangement not only compromised the ongoing group litigation but also effectively prevented any other Scheme Creditors from initiating similar claims against LFSL. The tailored solution provided by Clifford Chance not only resolved the immediate legal threats but also facilitated a structured financial settlement that benefited a large number of creditors, thereby stabilizing LFSLs position in the market and reducing potential future liabilities.