Judge approves Woodford redress scheme

AJ Bell press comment – 9 February 2024

• High Court judge has now approved the Woodford Equity Income Fund scheme of arrangement
• This comes after 93.7% vote in favour of scheme in December
• First payments expected in March, but delays may well tip them into April

Ryan Hughes(pictured), interim Investments managing director at AJ Bell, comments:

“Investors will be breathing a sigh of relief following the news that the judge has approved the Woodford redress scheme. The review had dragged on longer than anticipated due to some complex legal arguments heard at the court hearing in mid-January, but this clears a major hurdle for investors to move closer to getting their redress payments. 

“While there may be an appeal which means we aren’t quite there yet, the fact that the judge has approved the scheme is a key milestone. First payments to investors from the £230 million pot are anticipated to be paid in March although given the delay in approval this may well tip over into April, which will make it close to five years since the high profile fund suspended and investors were left in limbo. With each new step taken investors will just hope this whole saga can be brought to a conclusion.”