The legal counsel for investors in Masu Financial Group (Masu) has knocked back an offer of mediation by Masu lawyers, claiming the offer is not genuine.
"We have declined Masu's offer to mediate, but have responded by giving them the opportunity to consider settling your matter at 90 per cent of your loss, including the lost principal, interest and stress and anxiety, as well as a separate amount for costs," an investor statement from Slater and Gordon said.
The law firm's decision to reject Masu's offer stems from its belief the mediation is only being offered as a means to delay court proceedings.
"We are of the view that the offer to mediate is not genuine. Masu has yet to put on its evidence and we believe this is an attempt to avoid doing so, as the evidence is likely to be damaging to its defence," the statement said.
"There is a risk that Masu will use the mediation to further delay the preparation of the matter for hearing," it said.
Since July, Slater and Gordon has progressed with its case against the collapsed financial planning group on behalf of 26 investors.
"We requested and obtained access to important documents from ASIC. This is despite vigorous attempts by Masu to prevent the release of certain documents. These documents assist your claim," the statement said.
Last week, Masu settled a class action brought by ASIC on behalf of 85 investors, who were sold financial products in the Westpoint Group.
The claims of the final two investors were settled on confidential terms approved by the Federal Court of Australia in Sydney.
The case between Masu and investors represented by Slater and Gordon will return to court in March 2009.
