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The number of people hoping to take legal action against troubled financial advice firm Vestar is growing but one lawyer says disgruntled investors should wait for the outcome of a court case in Australia against former Vestar owner Octaviar before committing any money.
Meetings held yesterday in Whangarei and Kerikeri were the latest in a nationwide campaign by support group EUFA to bring Vestar investors together.
Organiser Suzanne Edmonds said about 140 people attended the meetings - half of whom indicated they would be keen to pursue legal action.
It is likely they will join a group of 45 Auckland investors who have already begun taking steps towards legal action against their former financial advisers, directors and the investment committee of Vestar.
Investors say they were given poor financial advice which saw them plough millions of dollars into finance companies which have since gone into receivership or moratorium.
But Wellington barrister James MacFarlane says investors would be best to wait until a liquidation case against Octaviar is finalised.
The Public Trustee of Queensland is trying to wind up Octaviar in a bid to get money back for Australian investors. The case is due to be held in the Supreme Court in Brisbane today and tomorrow.
MacFarlane said if the company was liquidated it could haveconsequences for any claims against Vestar.
Meanwhile, Christchurch company Gould Holdings, which took over the Vestar business from Octaviar on Monday, has said it will take a wait-and-see approach on any action taken against its financial advisers.
