Possible class action against collapsed finance companies

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Law firms from both sides of the Tasman are to review the viability of launching a class action suit against corporate trustees appointed to oversee failed finance companies such as Hanover and Bridgecorp.

Thursday, March 24th 2011, 11:22AM 8 Comments

Auckland law firm Turner Hopkins is working in conjunction with Australian law firm Slater & Gordon to examine whether legal action can be taken against "various entities who may be liable for losses sustained by investors following the collapse of finance companies such as Hanover and Bridgecorp."

On its website Turner Hopkins said any claims will be in the form of representative proceedings on behalf of a large group of investors "in one or more of the failed finance companies."

"Investors may well be entitled to recover economic losses incurred by them as a result," the company said.

Turner Hopkins said it has been working with Slater & Gordon for the past year analysing potential claims, as well as securing a team of experts including one of Auckland's most senior Queen's Counsel and accounting financial specialists.

The company also said the cost of any legal action would be met through litigation funding.

"This would mean that investors would not be required to make any payment at all for bringing this case. Nor would investors be exposed to any risk of adverse costs or other awards against them should the claim be unsuccessful."

Turner Hopkins said it was seeking expressions of interest from any investors who sustained losses from a New Zealand finance company collapse between 2006 and 2009.

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