What did directors know and when did they know is the question at the core of class actions by grower investors against MIS companies and directors.
The ABC website carried a story this past week ( Class action against agribusiness digs deeper: HERE) about the closing stages of a class action against failed MIS company Great Southern which has been running for months and was due to hear closing argument in July. A further 10,000 documents “have been uncovered that provide further evidence that the company misled investors.”
The ABC report continued:
“In what is Australia’s largest ever class action, more than 20,000 investors are seeking to recover their money following the $2 billion collapse of the company’s managed investment schemes in 2009.
Justice Clyde Croft agreed on Friday to reopen the case and allow the possible re-examination of witnesses, based on the documents which relate to the yield the company hoped to achieve from its timber plantations.”
More detailed reports appeared in the AFR this weekend.
Read, the rest, John Lawrence’s Tasfintalk, here
Accountant and former economist John Lawrence, the 2012 Tasmanian Times Tasmanian of the Year, has for years warned of the dangers of investing in MIS. His analyses ( including, The Death of MIS, 2008 ) ) can be found in the TT category, John Lawrence, here
