A class action against failed fuel pill company Firepower has been ordered to enter mediation, says litigation funder IMF Australia.
The company advised the Australian Securities Exchange on Tuesday that the Supreme Court of WA had ordered parties in the action to attend mediation on December 5.
But it should not be taken to mean any more than the parties proposing to discuss settlement in good faith, IMF said.
Perth-based Firepower promoted unproven fuel-saving pills until it collapsed in 2008, leaving investors more than $100 million out of pocket.
In May last year, liquidator Bryan Hughes of Pitcher Partners said an investigation into the personal assets of disgraced former Firepower boss Tim Johnston had been wound up because he and the creditors did not want to sink more money into it.
That effectively ended any bid to recoup money lost by duped private investors, Mr Hughes said.
He said Johnston was believed to have squirrelled away millions of dollars offshore despite being declared bankrupt after the company's fuel pill scandal.
In 2011, Justice John Gilmour of Perth's Federal Court banned Johnston from managing any company for 20 years.The Australian Securities and Investments Commission has estimated $80 million was raised from Firepower share sales to about 1400 investors.