Lawyers for Bell Potter Securities (Bell Potter) will attempt to have a class action filed against the group late last year dismissed, a court has heard.
Van Moulis, pactice group leader at lawfirm Slater & Gordon said yesterday that lawyers representing the financial services group advised the New South Wales Federal Court they would lodge an application requesting legal proceedings against the group not continue in a class action form.
"That's a fairly typical manoeuvre by the defendant's lawyers, Moulis said. "They want to break the group up which means the benefits of the class action structure, for example the synergies of cost and structure then swing back to them.
"I expect that we will succeed in getting that application dismissed and then there will be a short timetable to get the matter ready for a hearing after that," Moulis said.
Bell Potter is expected to file its application to dismiss the class action by next week.
A Bell Potter spokesperson was unavailable for comment by InvestorDaily's deadline.
Slater & Gordon filed its class action against Bell Potter last month after attempts at an out-of-court settlement failed.
The action has been filed on behalf of more than 50 former clients who lost $22 million due to an alleged stock sale.
As part of their claim, clients allege they lost the funds after Bell Potter representatives encouraged them to buy shares in the Brisbane-based biotech company Progen Pharmaceuticals (Progen) in 2007.
In April last year, Slater & Gordon mounted proceedings against Bell Potter over claims it recommended clients buy Progen stock in an offer the firm was partly underwriting.
The action is being supported by litigation funding firm, Litigation Lending Services.
The matter will return to court on Tuesday 15 February.
