FMA lawyers meet today with Hanover team

FMA chief executive Rob Everett told the <i>Herald</i> on Friday that discussions were ongoing. Photo / Richard Robinson

The Financial Markets Authority's lawyers and those representing Mark Hotchin, Eric Watson and four other men associated with the Hanover finance companies are today due to meet with a High Court judge.

Hotchin, Watson, Greg Muir, Bruce Gordon, Sir Tipene O'Regan and Dennis Broit are being sued by the FMA for allegedly misleading or untrue statements in finance company prospectuses.

The FMA is seeking compensation for investors who put $35 million into Hanover Finance, Hanover Capital and United Finance between December 2007 and July 22, 2008.

While the 12-week trial was due to go ahead in July this year, it has since been pushed and is now understood to be scheduled for September.

Lawyers for the parties, according to today's High Court list, are due to meet for an issues conference with Justice Helen Winkelmann.

The meeting, in the High Court at Auckland, is not in open court.

The Queen's Counsel representing Hotchin, Nathan Gedye, this morning said he could not comment when asked what would be discussed.

Similarly, a FMA spokesperson said he could not comment while the matter was before the court.

FMA chief executive Rob Everett told the Herald last year that its preference was to settle with the defendants.

The possibility of the parties settling was raised this time last year when litigation between Hanover and its insurance broker was put off to allow discussions to take place.

According to one senior legal source, settling always take longer when an insurer's lawyers are involved.