A financial services business licenced through National Australia Bank is suing an online forum for refusing to remove an allegedly fake and negative post about its services, claiming it has damaged its reputation with would-be clients.

It is the latest legal action launched against an online forum or review website for publishing negative comments, following several high profile cases in Australia and overseas.

A successful lawsuit could easily bankrupt Whirlpool. Credit:Louie Douvis

Financial advice group WCS Group has initiated action against Whirlpool in the Supreme Court of Victoria, seeking unspecified damages and costs, despite the fact the forum generates no revenue.

If the lawsuit is successful, it could essentially bankrupt the forum, which claims to have almost 650,000 members but makes no money.