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http://www.copyright link/news/policy/defence/metal-storm-collapse-will-lead-to-damages-lawsuit-20151110-gkv6uo#ixzz3rAxE0HRr

by Jonathan Barrett
A New York-based investment firm advised by John Hancock will sue Equity Trustees for tens of millions of dollars following the demise of electronic ballistics technology company Metal Storm.
The damages claim by the Lind Partners will follow a lengthy and technical legal dispute over how the voluntary administration of Metal Storm was handled in 2012. Lind helped finance the company, and held secured notes, and ANZ Bank was the trustee.
A Supreme Court judge ruled in August that Lind's Australian Special Opportunity fund could pursue a "damages or equitable compensation" claim against Metal Storm's trustee; and the time to appeal that order has now lapsed.
ANZ has since sold its trustee business to Equity Trustees, and a spokesman for the bank said that Equity Trustees, and not ANZ, would be liable for any damages. An Equity Trustees spokeswoman declined to comment.
Lind managing director Jeff Easton said money retrieved through a damages claim would be used to increase its investment program in Australian companies. He said the technology sector was attractive, especially given the country's research and development tax incentive.
"We are committed to Australia even though it's been a very long haul," said Mr Easton, referring to the litigation.
"I think we are in the first or second innings of the renaissance of the tech sector."
Claim likely to run to "tens of millions of dollars"
Mr Easton declined to comment on how much the damages claim would be. But those with knowledge of the litigation said a damages claim would likely run into the "tens of millions of dollars".
Lind argues that the trustee's actions prevented Metal Storm from securing contracts or progressing contract negotiations or obtaining a fair price for its assets. ANZ's actions may have also allegedly deprived Lind from purchasing Metal Storm's intellectual property, according to Lind.
Australian defence company DefendTex has since acquired Metal Storm's technology.
Metal Storm was founded by inventor Mike O'Dwyer, who wanted to build an electronic gun that could fire off more than a million bullets a minute. The promised technology included sci-fi elements such as requiring the shooter to wear a special ring with a transponder in it, in order to fire. This would render the weapon useless to anyone not wearing the ring.
Investors piled into the company float in 1999, and Australian and US defence agencies soon started showing interest in the technology.
In 2006, Mr O'Dwyer said he had declined an offer of $US100 million to move to China to develop his technology.
The company later ran into financing problems, which led to funding agreements being struck with groups including Lind.
Lind is a US-based alternative asset management company that counts Mr Hancock - son of mining magnate Gina Rinehart - and Australian technology entrepreneur Martin Rogers as advisers.
Receivers were finally appointed to Metal Storm in 2014, and its technology sold to DefendTex in September, 2015.