Solicitor firm Class Law has named 31 intermediaries, management groups and stockbrokers as targets...
Solicitor firm Class Law has named 31 intermediaries, management groups and stockbrokers as targets for legal action, arising from their involvement with split caps, but has not yet backed its stance by serving notice of actual claims.
The solicitor said claims will be based on either negligence, misleading marketing material or breach of regulatory business conduct rules in each individual case.
It has named management groups such as Aberdeen, Gartmore, Exeter, BFS and Hargreaves Lansdown as those that it may be targeting for action. It has also mentioned stockbrokers such as Killik & Co, Barclays Stockbrokers, Brewin Dolphin and TD Waterhouse. Stephen Alexander, a partner at Class Law, said many splits had been sold as low-risk but then reached over-geared positions.
Alexander said the firm has had 1,000 complaints regarding splits and he expects more to come forward. The firm has entered preliminary discussions with management groups and expects the first letters of claim to be delivered within 14 days.
Stephen Lansdown, director at Hargreaves Lansdown, said as yet it has had no contact with Class Law.
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