(Des Moines)– A district court judge says disgruntled investors with Dewaay Financial Network must wait to see whether two class-action lawsuits are certified before individuals can move forward with their claims.
Judge John Lloyd last week upheld a temporary injunction against investors wanting to proceed with arbitration hearings against Dewaay Financial to recover some of their investments.
The company founded by Don Dewaay faces a mounting number of claims that his brokers recommended unsuitably risky investments in real estate and oil-and-gas development deals.
Dewaay Financial denies those claims but acknowledges the company has a potential exposure of about $500 million. An audit report shows Dewaay may face bankruptcy if all claims against the company are upheld.
(From the Associated Press.)
