Employee shareholders pursuing a $4.6bn class action lawsuit against FNZ Group and 17 of its current and former directors have secured an initial win in the New Zealand High Court.
The employee shareholders allege that FNZ directors transferred up to USD$4.6bn away from them and to private equity and institutional investors.
FNZ and its co-defendants’ counsel lodged seven separate memoranda and two affidavits to halt the court proceedings, but the High Court judge rejected FNZ’s motion to stay the proceedings and agreed with the memorandum lodged by the employee shareholders.
It follows an unsuccessful attempt by FNZ directors to secure an urgent injunction from the Grand Court of the Cayman Islands against Kiwi Cayco GP, the lead plaintiff representing the shareholders.
A spokesperson representing the class action said: “We foresaw this strategy and are well prepared for FNZ doing everything in their power to prevent this from going to the High Court – including trying to bury it in technical minutiae.
“Seven memoranda and two affidavits later, the case has not been stayed as sought by FNZ and we hope to get back to the merits under the New Zealand Companies Act 1993, which protects minority shareholders.”
A spokesperson for FNZ said: “FNZ notes the claim filed in New Zealand and considers it to be entirely without merit. We are confident that our directors have at all times acted in the best interests of the company, its clients, employees and all stakeholders.
“The investments by FNZ’s institutional shareholders reflect a strong commitment to the company’s long-term growth and success, an outcome that can only be in the best interests of all its stakeholders.”
