A firm backing a class action filed by investors in failed carpet-making company Feltex has been ordered to pay $ 1 million into a trust account by the end of business on Friday.
The payment is security for costs in case the investors' case fails.
The lawsuit filed by the Feltex investors alleges false or misleading statements were made in the prospectus documents relating to the company's public float.
Within a year of the float, Feltex issued a profit warning and the company went into liquidation in December 2006.
The security for costs was due to be paid by mid-January. In a judgement released on Thursday, Justice Dobson said the plaintiff had had more than sufficient time to comply with the order.
A further pre-trial hearing will take place in February.
