Professional Investment Services (PIS) has lost its appeal against 50 former clients being able to proceed with their case against the firm as a representative action.
The New South Wales Court of Appeal yesterday gave the green light to the former clients to continue with their case.
The 50 clients are seeking compensation from PIS in the order of about $5 million through litigation specialist IMF.
"This gives us [IMF] the ability to pursue it in one action for all 50 of them grouped together. So the action is actually a far way down the path in the litigation process so it continues on," IMF litigation manager Charlie Gollow told InvestorDaily.
"Rather than the action being broken down into 50 individual claims it will now be determined through the one lead plaintiff's case."
The decision offers a watershed moment for the 50 clients as well as other former investors in the collapsed Westpoint group, Gollow said.
"It provides an alternative to the Federal Court class action system," he said.
"Not everything can go through the Federal Court. It's good for groups of people who suffered losses that are probably too small ... but if they can group together and get funded then this gives them the ability to pursue their claims when they wouldn't otherwise."
In July 2007, PIS sought an order to stop the investors from pursuing the company together.
The firm won the claim in January 2008, with IMF lodging their appeal shortly after.
