Investors launch class action on Fincorp collapse
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Investors lost more than $200-million in the collapse of the company. (AAP: Dean Lewins)
Investors who lost more than $200 million in the collapse of Fincorp are taking legal action against a company set up to protect their funds.
Almost 8,000 people lost money when the property developer went into administration last year.
Melbourne law firm, Slater and Gordon, will seek damages of up to $100 million from the corporate trustee company Sandhurst.
Lawyer Ben Phi says the company was paid to ensure Fincorp could repay the money it borrowed from investors.
"The claim's going to be that Sandhurst failed in its fundamental responsibility to ensure that Fincorp had sufficient financial capacity to meet its obligations to debenture holders," he said.
"That is, to pay interest on a monthly basis and then also to return capital at the conclusion of the term."
Sandhurst is not commenting at this stage.
Investor Adam Brunner says he lost $150,000 plus interest as a result of Fincorp's collapse.
But the 61-year-old says other investors suffered a lot more.
"To see people in their 70s and 80s who felt they totally lost their future now that was then now with the current economic climate, I shudder to think what these people are feeling today," he said.
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