Litigation funding company IMF has told the Australian Securities Exchange that it will fund litigation by members of the Great Southern Cattle projects against companies within the Great Southern Group.
IMF chief operating officer Diane Jones said the litigation will be a group action in the Supreme Court of Western Australia.
"The agreement to fund is subject to a normal multi-party condition that sufficient members wish to participate in the litigation," Jones said.
IMF director Hugh McLernon told The Australian that Great Southern's "Project Transform" was void because investors had not approved the swap.
"A major issue we are looking at is how one minute people were standing with interests in cattle and the next they had shares in Great Southern," McLernon told the newspaper.
"This deal came along when Great Southern couldn't raise any further capital, they couldn't obtain debt and their ability to sell managed investment schemes was severely curtailed."
Earlier this month, law firm Slater & Gordon said it had commenced an investigation into the viability of a class action against Great Southern.
