A firm backing a class action filed by investors in the failed carpet-making company Feltex has been ordered to pay $1 million into a trust account by the end of business on Friday.
The payment is security for costs in case the investors' case fails.
The suit in the High Court in Wellington claims that false or misleading statements were made in prospectus documents relating to the company's public float.
Within a year of the float Fextex issued a profit warning and the company went into liquidation in December 2006.
The security for costs were due to be paid by the middle of January and in a Judgment released on Wednesday, Justice Dobson said the plaintiff had had more than sufficient time to comply with the order.
A further pre-trial hearing will take place next month.
