Village Life investors have filed a $30 million class action against the company and directors claiming they were willfully misled about the "true position" of the company.
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The legal action was commenced by law firm Slater and Gordon in the NSW Supreme Court last week and was first reported in the Daily Liberal last month, with investors suing Village Life and directors David Jeffries, John Krimmer and Anthony Roberts.
Mr Jeffries, a former chairman of Village life, still sits on the board.
Mr Krimmer and Mr Roberts were once co-founders and joint-managing directors of Village Life, but stepped down from the board last year.
Village Life operated Dubbo's Village Life retirement accommodation until it relinquished the lease last month.
The property is now managed by retirement accommodation company SCV Group.
Principal lawyer for the investors Steve Lewis told the Daily Liberal yesterday the allegations relate to a company prospectus in 2000 and several "disclosures and non-disclosures" before the company was made public and afterwards. The company was floated on the Australian Stock Exchange in 2003.
"We say that the prospectus was wrong and the shareholders were not told the true position of the company up to 2005, " Mr Lewis said.
The matter will go before the Supreme Court in Sydney on June 29 for a directions hearing, with a court date expected to be set directly following the hearing.
neil.varcoe@ruralpress.com
