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Hanover civil action in court

Lawyers for the Financial Markets Authority and six men connected with Hanover Finance were in court in Auckland on Wednesday as legal action over Hanover's failure continues.

The Financial Markets Authority (FMA) has launched proceedings against Hanover Finance principals Mark Hotchin and Eric Watson along with Sir Tipene O'Regan, Greg Muir, Bruce Gordon and Dennis Broit.

Lawyers for the parties held their first case management conference behind closed doors at the High Court in Auckland on Wednesday.

A lawyer connected to the FMA told NZ Newswire the parties were unlikely to meet next again until next April.

More than 16,000 investors lost over $500 million following Hanover's 2008 collapse but the action relates to $35 million of investments and reinvestments in 2007-2008.

The FMA alleges some statements made in various fundraising documents and advertisements were misleading and untrue.

It was looking for liability decisions against the six men, along with penalties, and then possibly compensation.