Auckland law firm Glaister Ennor and litigation funder IMF Bentham Ltd have announced a class action seeking compensation for shareholders of the collapsed New Zealand insurance firm CBL Corporation.
The statement says the action will allege that CBL breached its obligations to keep shareholders properly informed about CBL's French insurance business.
"CBL is the ultimate parent company of CBL Insurance Ltd, 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," it says.
"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 claim will allege 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 will be alleged that CBL did not disclose information about its French insurance business in a timely and accurate way. The claim will allege that CBL's breaches of the Financial Markets Conduct Act have caused loss and damage to CBL shareholders."
The statement says the claim will be filed in the HIgh Court of New Zealand, and 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 being invited to signup to participate in the action.