Published 8 March 2008
Investors in Feltex Carpets Ltd have filed a representative action in the Christchurch High Court against directors & advisors on the company’s 2004 prospectus.
The representative compensation claim has been filed by law firm Wakefield Associates on behalf of Eric Houghton & Darryl Jones against:
Tim Saunders, Waipara; John Feeney, chief executive Sam Magill & Peter Thomas, Melbourne; Craig Horrocks, Peter David Hunter & Joan Withers, Auckland; first defendantsCredit Suisse First Boston Private Equity Inc & Credit Suisse First Boston Asian Merchant Partners LP, second & third defendantsFirst NZ Capital, Auckland, fourth defendant, andForsyth Barr Ltd, Dunedin & Wellington, fifth defendant.
The claim – led by Auckland investor Tony Gavigan – is made for investors in Feltex through its prospectus of 5 May 2004 or who bought on market before Feltex issued a profit downgrade announcement on 31 Mach 2005, and sold at a loss or continued to hold their shares through to the company’s liquidation in December 2006.
The representative plaintiffs allege the prospectus was misleading & deceptive, contained untrue & negligent statements, omitted to disclose material information, and breached the Fair Trading Act, the Securities Act & fiduciary duties to the plaintiffs.
Investors in Feltex shares at the time can opt out of the court action, but must do so by writing to the court by Friday 11 April, or by entering their names on an opt-out database on the plaintiffs’ website.
Website: Feltex Investors Trust
(This is not the website listed in the action group’s ads, which I coul.dn’t open)
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Attribution: Company statement, story written by Bob Dey for The Bob Dey Property Report.