Auckland law firm Glaister Ennor and commercial litigation funder IMF Bentham Ltd have announced the filing of an application in the High Court in Auckland seeking leave to commence a class action against CBL Corporation (in liquidation).
The action will seek to recover compensation for CBL. It alleges that CBL breached its obligations to keep shareholders properly informed about CBL’s French insurance business.
A statement from Glaister Ennor and IMF Bentham says CBL is the ultimate parent company of CBL Insurance Limited, a New Zealand insurer which engaged in the underwriting of French construction insurance.
"Through a 2015 initial public offering, CBL was dual-listed on the New Zealand Exchange and Australian Securities Exchange. In February 2018, CBL Insurance was placed into interim liquidation by the High Court of New Zealand following an application by CBL Insurance’s prudential regulator, the Reserve Bank of New Zealand. Shares in CBL were suspended from trading on 8 February 2018. By May 2019, both CBL and CBL Insurance were placed into liquidation."
The statement says the claim alleges that at the time of CBL’s IPO in September 2015 and at all times up until the suspension of CBL shares in February 2018, CBL breached disclosure requirements imposed on it by the Financial Markets Conduct Act 2013.
"Specifically, it is alleged CBL did not disclose information about its French insurance business in a timely and accurate way. The claim alleges that CBL’s breaches of the Financial Markets Conduct Act have caused loss and damage to CBL shareholders."
The statement says Glaister Ennor has engaged Philip Skelton QC as senior counsel for the claim.
The litigation is being funded on a no-win-no-pay basis by IMF with all costs underwritten by IMF. Shareholders who purchased CBL shares at any time in the period between 7 September 2015 and 8 February 2018 are invited to visit www.imf.com.au/CBL to obtain more information and signup to participate in the action.