Litigation lawyers Harcus Sinclair have written to Capita Financial Managers Limited (CFML) notifying them of a claim against them in respect of a number of ‘sample' Arch Cru clients.
This is with a view to applying for a Group Litigation Order which will claim for losses incurred by many hundreds of investors in Arch Cru funds.
IFA Centre managing director Gillian Cardy, who has spearheaded activities to hold CFML to account for investor losses in the Arch Cru funds, said "Our activities in this matter have previously been dismissed as ‘theory'. I am delighted to confirm that our position is no longer theoretical."
CFML also chose to remind Arch Cru investors of the opportunity to claim on the Capita payment scheme in the last fortnight.
The opportunity of participation in litigation against Capita will only be available to investors who have not accepted Capita's offer of a payment scheme.
Capita has chosen this particular moment once again to encourage investors to accept their offer in full and final settlement of claims against them.
Cardy said "The investor letter is misleading and engages in all sorts of number-juggling that no adviser would be allowed to get away with.
"Averaging the return from all six funds to quote an average investor return is totally inappropriate, ignores the fact that most investors invested at significantly higher (incorrect) fund prices, and that the 25% of investors totally ignored by the ‘industry-wide' redress scheme should refuse to accept that a return of 60% of capital invested is somehow an acceptable outcome."
Investors who have not yet notified Harcus Sinclair of their interest in joining the action are encouraged to do so at www.archcruclaims.org at the earliest opportunity so that their claims can be included in any action or other out-of-court negotiations which may be proposed.
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