The joint financiers of Raine Square have launched further legal action against Luke Saraceni, alleging misleading conduct over the use of proceeds from the sale of a stake in a residential development in the South West and moving to recover costs caused by the delay of court proceedings.

The financiers, Bankwest and Bank of Scotland International, lodged a writ in the Supreme Court of Western Australia earlier this week, claiming Mr Saraceni had said $7 million raised from the sale of a stake in the Vasse Newtown development near Busselton would be applied to reduce debts on Raine Square.