24 May 2010

Former Feltex shareholders urged to join lawsuit

9:17 pm on 24 May 2010

A lawyer leading a class action against failed carpet company Feltex says former shareholders need to 'opt in' to the lawsuit as soon as possible to have any chance of compensation.

The company went into liquidation in December 2006, leaving 8000 shareholders who had invested $254 million in its public float holding worthless shares.

People wanting to take a class action against Feltex had pushed for an 'opt out' clause, but this has been denied by the courts.

Shareholders must now 'opt in' and with the six-year statute of limitations coming into play on 2 June they are being advised to act quickly.

Lawyer Austin Forbes says the action will target the company over its alleged misleading, deceptive and negligent conduct.

Mr Forbes alleges information in Feltex's prospectus was disguised and the more shareholders that 'opt in' to the class action, the better its chance of success.