The firm said it is expecting thousands of investors to come forward to joint the case, which challenges the validity of loans issued by Bendigo and Adelaide Bank, Javelin ASset Management and Great Southern Finance. 

The action will seek damages on behalf of those investors who used their own funds to invest in the failed schemes.  

Ron Willemsen, a principal at Macpherson + Kelley Lawyers, who is leading the class action on behalf of 2,000 plus investors, said there are probably thousands more who would now join the case. 

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More than 40,000 investors with funds managed by Perth-based Great Southern are facing big losses after the appointment of administrators to the debt-laden company.

Great Southern offered investment packages in forestry, cattle and agricultural projects on nearly two million hectares of land across Australia. The company has about $700 million in debt.

If the action succeeds, investors who took out loans could expect to get back what they had already paid, and also be relieved of the obligation to pay anything further. Meanwhile M+K will seek damages on behalf of investors who used their own money to invest in the Great Southern schemes.

Willemsen said having succeeded with an icebreaker case, which saw the Victorian Supreme Court make an order in March allowing the first case to proceed on behalf of people who invested in Great Southern’s 2005 and 2006 plantation projects, the opportunity for investors to recoup their losses was now ripe. 

The law firm also intends to file further class actions for clients who invested in various other Great Southern schemes during the years 2005 to 2009.