More than 40 property investors are taking High Court action after saying they lost money when buying student accommodation properties.
The Irish investors, who include Ireland’s former prime minister Brian Cowen, bought apartments at the height of the property boom for £240,000, only to discover that last year they were selling at around £72,000.
They are accusing legal firm Punch Robson Solicitors, which they say advised them, of negligence.
The development, Carr Mills in Leeds, was completed some 12 years ago. It went into receivership in 2011.
The solicitor acting for the group, Chris Waters of Meaby & Co, said the anticipated value of the total claim is £14m.
He said: “We are aware that UK-based investment schemes of this nature were prominent with Irish investors between 2004 and 2008.
“At the time, these investment schemes were being sold as having low or no risk, with participants generally funding purchases with the benefit of 100% mortgages.
“Properties were often overvalued or failed to perform in line with representations made. Some of these developments have gone into receivership leaving participants with significant outstanding liabilities.
“Hundreds of Irish citizens who bought into ‘risk free’ schemes have been left with crippling lifetime debt. We’re keen to hear from anyone affected.”