Investors in the failed agricultural investment scheme manager, Great Southern Group, have launched a class action against the Bendigo and Adelaide Bank which lent them money.

The bank took up the loans which were initially taken out with the Great Southern Group before it was placed in receivership in May 2009.

The 280 investors involved owe a total of around $14 million.

Law firm DC Legal has launched the class action in the Federal Court.

Solicitor Bruce Dennis says it wants all of these loans wiped off the books.

"The bank bought the loans from the Great Southern Group and our contention is that they bought the loans with all the problems inherent with the loans," he said.

Mr Dennis says the investors would not have taken out the loans if they had been provided with more information.

"The investors were misled as to the returns that they could expect," he said.

"Investors in many cases were not told that the financial advisers were being highly remunerated and investors were not told that the company was relying on continuing to sell New Woodlands in order to stay in business."