Embattled dealership Masu Financial Management has been hit with a third round of legal action over its liability to victims of the Westpoint collapse.
Proceedings began in the New South Wales Supreme Court on Friday between the dealer group’s former client Joan Prince and two financial planners, Martin Speiser and Anthony (Tony) Rosenberg.
Prince is suing Masu and Speiser, one of the group’s directors, as well as Rosenberg, a former employee, for $550,000 plus damages and court costs for negligence in being advised to invest in the failed property empire’s York Street mezzanine scheme.
Supreme Court judge Patricia Bergin adjourned proceedings until February 1, 2008 and gave the defendants until November 30 to file court documents.
It is understood Masu is discussing a potential out-of-court settlement with its professional indemnity insurers.
On November 8 the corporate regulator ASIC said it intends to sue Masu, five other dealer groups and Westpoint’s directors to recoup $245 million in losses for 3600 investors.
ASIC believe Masu owes 120 investors around $12.6 million.
Law firm Slater and Gordon launched a class action on March 13 against Masu by on behalf of 23 clients who lost $2.6 million.
Rosenberg was an authorised representative of Masu from June 2004 to April 2005.
He began providing financial advice with Odessey Financial Management in May 2005, which is licensed by the Perth-based Wealthsure dealer group.
Speiser is a Certified Financial Planner as well as a chartered accountant.
Solicitors for the defendants did not return calls.
