BANKSIA investors will soon receive letters informing them of a class action lawsuit on their behalf against those accused of being complicit in their financial losses.
The $660 million collapse of Banksia Financial Group will continue to drain money from people, but the latest groups to get involved will be able to afford it.
Melbournesolicitor, Mark Elliot, has filed a class action lawsuit on behalf of Banksia’s 16,000 former investors who stand to lose between 35 to 50 per cent of their money.
The Banksia group of companies, individual directors, the investment fund trustees and Banksia’s auditors have all being named as defendants in the class action.
Mr Elliot told The Spectator he would send a letter to every investor sometime this week.
Banksia’s receiver, McGrathNicol, has already distributed 20 cents to investors for every dollar they are owed and hopes to bring that total to 65 cents over the next few years.
McGrathNicol is also hoping to sell $270m worth of Banksia’s loans to raise funds for investors and to continue to pay its substantial fees.
At the time of publication, six separate law firms had been hired to act on behalf of the defendants who were served notice by Mr Elliot.
Full story in today’s Spectator.