It maybe worthwhile seeking preliminary advice on this question....

It maybe worthwhile seeking preliminary advice on this question. I've never been involved in an class action and only have a cursory understanding. But three questions come to mind:

1) Is there a case against Wellard? Well the share price has plummeted since IPO. To justify a case, look firstly, whether the IPO was fraught with mis-information and missing information that was critical for investment evalution? Not sure. Their IPO documents did outline the debt involved, risks and highlighted a going concern issue.

2) Would a class action destroy Wellard and, as a result, any potential investment recovery? They are in a bad way already. Adding additional pressure could well see distraction from the core business, cash flow deterioration, and probable destruction of the company given current losses and expected future losses.

3) What funds would be left for shareholders given class action? This would depend on net asset value. After banks, secured investors and creditors are paid as much as available, and lawyers take their fees, I suspect there won't be much left for ordinary shareholders.