Melbourne solicitor Mark Elliott said the formal statement of claim would give specific details about the nature of the allegations against Banksia Securities (BSL) and the associated Cherry Fund (CFL), their directors and auditors.

The formal statement of claim would be posted on the class action’s website which was expected to be operating within a few weeks, he said.

The website address will be www.banksiaclassaction.com.au

Speaking to The Standard earlier this week, Mr Elliott said solicitors for all the directors named in the class action had contacted him to say they were representing the directors. He had yet to hear from the Trust Company and the auditors, he said.

The class action’s writ, which was lodged with the Supreme Court of Victoria on December 24, made only general allegations against the two companies, their directors and auditors.

It alleged that BSL and CFL were not run in a proper and efficient manner, that the Sydney-based Trust Company had failed to adequately supervise the financial position of BSL and CFL and that the auditors, RSD Chartered Accountants of Bendigo, had failed to adequately audit BSL and CFL’s books.

Mr Elliott estimated it could take between 18 months to two years before the case got to court.

He said a letter to all 16,000 debenture holders in Banksia Securities and the Cherry Fund would be sent out in the next two to three weeks giving details of the class action.

The letter would outline investors’ option to withdraw from the class action but it would be “foolish” for them to do so, he said. 

“Being part of a class action is a privilege.

“It would be foolish to do anything but sit and wait and listen.

“It is a free bet for them (the investors). We will run the case on a no win, no fee basis.”