# IMF - Has anyone used them in a class action?



## Prospector (10 December 2008)

OK, I have received documentation about the class action against MFS (Octaviar) and was wondering if anyone has ever joined a class action for lack of public disclosure?  This is being done through IMF - a no-win no-pay group - listed on the ASX.

Risks?  The thing which rang a warning bell (esp in the current climate) is if IMF goes bust, then if the case loses then we may have to pay the winner's legal bills.  Just a tad worrying!


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## It's Snake Pliskin (10 December 2008)

Prospector said:


> OK, I have received documentation about the class action against MFS (Octaviar) and was wondering if anyone has ever joined a class action for lack of public disclosure?  This is being done through IMF - a no-win no-pay group - listed on the ASX.
> 
> Risks?  The thing which rang a warning bell (esp in the current climate) is if IMF goes bust, then if the case loses then we may have to pay the winner's legal bills.  Just a tad worrying!




Has the lack of disclosure led to losses for investors directly?


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## Prospector (10 December 2008)

There are grounds for a class action based on a failure by Octaviar Ltd (“OCV”) (formerly known as MFS Limited (“MFS”)) to disclose to shareholders and to the market material information in breach of s.674 of the Corporations Act 2001 (Cth).

It limits the claim to people who bought MFS shares in the period after it made its claim to ASX that there were no outstanding debt requirements; once when the information about the debts became known, the share price went through the floor.

This was in January 2008; so cannot be attributed to the recent crash, but events specific to the company.


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## It's Snake Pliskin (10 December 2008)

Prospector said:


> There are grounds for a class action based on a failure by Octaviar Ltd (“OCV”) (formerly known as MFS Limited (“MFS”)) to disclose to shareholders and to the market material information in breach of s.674 of the Corporations Act 2001 (Cth).
> 
> It limits the claim to people who bought MFS shares in the period after it made its claim to ASX that there were no outstanding debt requirements; once when the information about the debts became known, the share price went through the floor.
> 
> This was in January 2008; so cannot be attributed to the recent crash, but events specific to the company.




I see. Thanks.


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## John VK2 (12 March 2009)

It is pertinent to remember that none of these so called no pay no fee people are going to work for nothing.  Oh yes if they win, you will only get SOME of your money back the remainder is taken in fees.

Required reading KING OF TORTS by John Grisham.


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## Fleeta (12 March 2009)

Good luck - I signed up to IMF for the ION battle 5 years ago that still rages. They will take a fairly nice commission if they win.


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## sqwark7600 (23 June 2009)

John VK2 said:


> It is pertinent to remember that none of these so called no pay no fee people are going to work for nothing.  Oh yes if they win, you will only get SOME of your money back the remainder is taken in fees.
> 
> Required reading KING OF TORTS by John Grisham.




If you are about to lose it all and need legal representation especially as a class action participant IMF is probably a reasonable choice IMHO. I was a participant in a class action utilising their litigation funding. (The cases usually have to involve a miminum specified amount (quoted as >$2m on IMF's website and of course must be rigorously investigated by them prior to acceptance). 
In regard to costs it is not as simple as it looks. Firstly at the eleventh hour the defendant may make an out of court discounted settlement offer that the plaintiff cannot refuse. Secondly if the matter proceeds to conclusion in the court(s) the judge's final decision(s) may award only part of the plaintiff's total claim. Thirdly given a cash settlement you then discount this by the agreed % charged by the litigation funder. The result down this road is based on any return is better than no return particularly if you are not up for costs. Finally, in regard to IMF going bankrupt I think if you look at their business model, at the end of the worst day, they will probably to be the last man standing. 
I trade and currently hold IMF shares on the basis of their model, fundamentals and success rate.


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## Quincy (23 June 2009)

Prospector said:


> OK, I have received documentation about the class action against MFS (Octaviar) and was wondering if anyone has ever joined a class action for lack of public disclosure?  This is being done through IMF - a no-win no-pay group - listed on the ASX.
> 
> Risks?  The thing which rang a warning bell (esp in the current climate) is if IMF goes bust, then if the case loses then we may have to pay the winner's legal bills.  Just a tad worrying!






John VK2 said:


> It is pertinent to remember that none of these so called no pay no fee people are going to work for nothing.  Oh yes if they win, you will only get SOME of your money back the remainder is taken in fees.




I think you will find that IMF is only the litigation funder. I think your case is being tried by law firm Maurice Blackburn. 

IMF usually only get involved in funding a case if (after investigation) they believe that the chances are well and truly in their favour of obtaining a favourable result.  The fact that they have agreed to take your case on should give you some confidence that you may retrieve some of your original investment (don't hold your breath though).

It is not unusual for a litigation funder to take up to 40% of any return that may be awarded in the case (I believe that includes all their funding fees - legals etc.).  The fee % will have been negotiated though, so you can  always check with whoever sent you the information pack offering you the chance to participate in the class action and ask them how the fees work.


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