IMF Australia receiving legal advice on second Firepower claims action
Perth-based litigation funder IMF Australia is receiving legal advice on a second legal action on behalf of 79 investors in failed fuel technology company Firepower, following the launch of its first action this month.
IMF lawyer Steven Penrose told Money Management that the group is currently “seeking legal advice on a second possible claim” to recover $40 million in lost investor funds placed in Firepower.
On June 3, IMF launched its first legal action in the Supreme Court of Western Australia in Perth on behalf of the 79 investors.
This first case is seeking $5 million from lawyer and former WA police minister Gordon Hill for alleged breach of trust in 88 transactions handled by his now-defunct law firm.
Previously IMF has said it would target lawyers, advisers and share sellers that recommended Firepower shares to recover the investors’ $40 million.
More than 1,200 shareholders are thought to have invested $100 million into Firepower, which promoted a fuel additive designed to significantly reduce vehicle emissions.
The investors were attracted by an alleged Firepower claim to have invented a pill to improve fuel consumption and decrease toxic emissions in motor vehicles.
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