A judge has approved directions in a High Court claim after a disgruntled creditor of the failed peer-to-peer lending firm FundingSecure alleged its £500k investment was misappropriated and should be returned.
In 2022 this site exclusively reported on retail lenders who were raising money for legal advice after being faced with the prospect of being joined to this claim.
Read ‘FCA silent on client account cash grab‘ for a background to FundingSecure and why a large hole was said to have existed in the client account.
Since then the mouseinthecourt reported on investors anger as the FCA closed their investigation into the firm — with no public action taken.
We also reported the issuing of the claim, including links to the underlying court documents in “FundingSecure administrators to remain neutral on £500k claim against “innocent investors”“
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Reporting by Daniel Cloake
This site can now exclusively report that District Judge Nathan Banks has approved directions following an application made by the claimant JC Starr Holdings Limited on January 12th 2024.
The application was supported by written submissions of Ms Emilie K Bladon, a Commercial Litigation Associate at the claimants law firm Boodle Hatfield LLP.
The court order, dated 3rd February 2024, reveals that some 63 persons will be contacted by 26th February 2024 and that they will be provided with copies of the court order and court documents.
The 63 is understood to comprise of individuals and companies who had money in the FundingSecure client account, and who had objected in writing to the claim.
The order explains that if any of the 63 “wish to pursue a claim to the monies that have been held in the [client] account … shall by 4pm on 18 March 2024 file and serve on the parties a witness statement with a signed statement of truth“.
This witness statement should “comprehensively” set out:
- Confirmation of their wish to pursue their claim to the monies that have been held
in the Account and their wish to be joined as a party.
- The factual and legal basis of their claim to the monies that have been held in the
Account
- The quantum of their claim to the said monies
- The basis upon which they contend that they ought to be joined as a party
There will be a hearing with a time estimate of 2 hours held on a date after 8th April 2024 for further directions.
Investors left high and dry?
In a written response to the claim by barrister Jon Colclough, on behalf of FundingSecure Ltd (in administration), we’re told that they “will take a neutral position on the claim advanced by the Claimant“.
The FCA previously refused to comment on whether they “intend to provide support or assistance to the lenders?“
This site will keep a close eye on events going forward.
Case Files
06/09/2023 – Claim form issued
06/09/2023 – Particulars of claim filed
16/10/2023 – Filing of defence deadline extended
09/11/2023 – Defence statement filed
13/01/2024 – Court order filed
03/02/2024 – Court order filed
JC STARR HOLDINGS LIMITED – Claimant
-v-
FUNDINGSECURE LIMITED (in administration) – Defendant
Case number: BL-2023-000078
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