Around 2,000 private investors have rejected the Capita offer over the failure of Arch cru funds.
The offer closed at mid-night on New Year, leaving litigation as the only route left open for those seeking compensation from Capita.
Capita’s offer of roughly 15p in the pound was considered ‘derisory’ by 800 investors who are already pursuing their claim through City solicitors Harcus Sinclair.
Now the Arch cru Litigation Committee representing them are appealing to others to join the action saying: “You have nothing to lose but everything to gain.”
In November last year a Group Litigation Order was granted by the High Court to investors seeking redress from Capita Financial Managers Ltd, the authorised corporate director of the CF Arch cru Investment Funds and CF Arch cru Diversified Funds.
The Arch cru investments were sold to around 20,000 small investors as low to medium risk, through FSA regulated funds, using complex offshore structures which investors claims hid the fact that their money was placed in highly risky, illiquid private equity and other schemes.
John Hawkes, chairman of the committee of the Arch cru litigation group, said: “Arch cru is one of the financial scandals of our time. The FSA censured Capita Financial Managers for its involvement in the scheme, whereupon they cleverly made a low settlement offer which many ordinary hard-working people have been forced to accept because they could not afford to take the risk of suing for proper compensation .”
The owners of over £50 million of invested funds have not accepted Capita’s offer. These investors will be able to sign up to the litigation until the end of March this year at no risk or cost to themselves.