Some out-of-pocket investors are being automatically joined into the Feltex class-action by their nominee company, said a lawyer associated with the case
Around 3000 investors have joined representative action against former Feltex directors and sellers of its shares, alleging the company's prospectus in 2004 - the year it floated - contained information that was misleading or wrong, or omitted to make information available that would have affected investment decisions.
Feltex collapsed in 2006, causing 8000 investors to lose millions of dollars. Investors, represented in court by Feltex shareholder Eric Houghton, are seeking a refund of the purchase price of their shares, plus associated interest and costs.
The first part of the case is due to begin in the High Court at Wellington next March and investors have until this Thursday to opt-in to the case.
Houghton's lawyer, Austin Forbes QC, said yesterday the opt-in closing has "brought a rush of last minute claimants" and that another 100 or so investors had asked Houghton to represent them in the litigation.