According to The Australian Financial Review, Dennis & Company is representing 600 investors who invested an average of $50,000 in one of Great Southern's cattle schemes between 2006 and 2007.

Company principal Bruce Dennis said the investors had had their interests compulsorily acquired and transferred into shares. At the same time loans, many of which were provided by Great Southern Finance, were called in.

"These investors are stuck with loans and no underlying assets," Mr Dennis said.

He said the potential lawsuit revolved around representations by Great Southern, which told investors it had the "financial wherewithal to keep the projects going" but at the same time knew it had to convert the project into shares to stay in business.