Feltex shareholders in court victory
The 3000-odd former Feltex shareholders pursuing a representative action against the directors and sellers of shares in the collapsed carpetmaker have won a critical victory in the Court of Appeal today.
The appeal court has dismissed five appeals taken by the directors and others against earlier decisions of the High Court in favour of the shareholder action.
The five appeals fell into two distinct categories.
The first category is the directors' challenge to Justice French's approval of the representative action and approval of the funding proposal for the litigation.
The second category of appeals was based on the argument that the claims of most if not all of the represented parties were time-barred.
The 3000 investors are represented by former shareholder Eric Houghton.
He started the action in early 2008 but the appeal court said it was ''still some distance from trial''.
There have been several interlocutory skirmishes and decisions since then.
The other driving force behind the representative action is former merchant banker Tony Gavigan who organised the litigation funding.