IMF Bentham and Glaister Ennor announce a shareholder class action in the New Zealand High Court regarding the collapse of CBL Corporation
- Contact:
- Ewen McNee
- Senior Investment Manager | +61 2 8223 3515 | [email protected]
- Marella Gibson
- Chief Marketing Officer - Australia and Asia | +61 2 8223 3517 | [email protected]
AUCKLAND, 14 October 2019: International dispute financier IMF Bentham (ASX:IMF) and leading New Zealand law firm Glaister Ennor announced today a class action seeking compensation for shareholders of failed New Zealand insurance firm CBL Corporation (CBL).
The collapse of CBL has impacted shareholders across the world, including retail investors in New Zealand who have seen their investment in CBL wiped out.
The action will allege CBL breached its obligations to keep shareholders properly informed about CBL’s French insurance business.
Background
CBL is the ultimate parent company of CBL Insurance Limited (CBL Insurance), 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.
Claim
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 (NZ). Specifically, it will be alleged 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 claim will be filed in the High Court of New Zealand. Glaister Ennor have engaged Philip Skelton QC as Senior Counsel for the claim.
Jack Porus, Joint Managing Partner of Glaister Ennor, said: “There have been growing calls for accountability from our shareholder clients, as well as industry leaders, following the collapse of CBL. Glaister Ennor and Philip Skelton QC are answering those calls, with the support of IMF, in seeking compensation on behalf of those who have suffered significant losses as a result.”
IMF Bentham Investment Manager, Ewen McNee, said: “We have received strong interest in the action from institutional investors in New Zealand and abroad and we are now opening signup for retail shareholders whose investment in CBL has been lost due to the company’s alleged misconduct.”
How can CBL shareholders participate in the action
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.
About IMF Bentham Ltd
IMF Bentham is one of the leading global dispute resolution funders, headquartered in Australia and with offices in the US and Canada, Singapore, Hong Kong and the UK. IMF Bentham has built its reputation as a trusted provider of innovative funding solutions and has established an increasingly diverse portfolio of dispute resolution funding assets.
IMF Bentham has a highly experienced dispute resolution funding team overseeing its investments. We have an exceptional success rate over 192 completed investments and have recovered over A$1.5 billion for clients since 2001. IMF now has close to A$2 billion in combined funds under management globally, making us a strong ally for our funded clients.
For further information regarding IMF Bentham and its activities, please visit www.imf.com.au.
About Glaister Ennor
Glaister Ennor was established over a hundred years ago. It quickly grew into what it is today, a well-respected and highly regarded 14 partner New Zealand firm with long-standing ties to the property and investment communities in Australasia.
For further information about Glaister Ennor please visit https://www.glaister.co.nz.
New Zealand: Jack Porus, Joint Managing Partner | +64 9 356 8241 | [email protected]
New Zealand: Mitch Singh, Partner | +64 9 969 1214 | [email protected]
For further information about Philip Skelton QC, please visit www.bankside.co.nz/barrister/philip-skelton/.