Close to 2000 Great Southern investors have filed class action proceedings against Bendigo and Adelaide Bank (BABL) in a bid to recover losses from loans.
Investors in the Great Southern group's managed investment schemes are suing the banking group over money the bank lent them to invest in the schemes.
On behalf of investors, Sydney law firm DC Legal has called on the Federal Court to set aside the loans they took out and for investors to be reimbursed for all costs.
DC Legal solicitor Bruce Dennis said the class action in the Federal Court also names as respondents three Great Southern Group directors: John Young, Cameron Rhodes and Phillip Butlin.
"The action claims recovery of all funds lost in these projects including the management fees and insurance fees paid, and for borrowers, the setting aside of the loans and all monies paid pursuant to the loans to Great Southern Finance Pty Ltd (GSF) and its successor BABL," Dennis said.
The lead applicant in the case is Cutforth Pty Limited, which invested just over $1 million in Great Southern Group managed investment schemes, a statement from DC Legal said.
The investors' statement of claim notes they all invested in woodlots and other tangible proprietary agricultural interests in Great Southern's plantation schemes between 1 January 1998 and 1 January 2009.
The claim also states investors either paid for, or entered into, a purported loan with GSF to fund payment of application fees, insurances and other administration fees relating to the plantation scheme which was later purportedly assigned to BABL.
It is understood the Great Southern group has a reported shortfall of about $2 billion, with reports claiming BABL has $550-$615 million in loans to 8200 investors with some $181.8 million in payments at least 90 days in arrears, DC Legal said.
The DC Legal class action is the second large action launched against Great Southern and its associated directors.
Earlier this year, Macpherson + Kelley Lawyers filed a Great Southern action in the Victorian Supreme Court.
The matter will next go before the Federal Court on 22 October.
