Compensation sought for shareholders of failed New Zealand insurance company, CBL Corporation: shareholder class action announced
International dispute financier, IMF Bentham Limited has announced a class action seeking compensation for shareholders of failed New Zealand insurance company, CBL Corporation (CBL). IMF Bentham has teamed up with New Zealand law firm, Glaister Ennor who will lead the action together with a counsel team headed by Philip Skelton QC.
The collapse of CBL has impacted shareholders across the world, including retail and institutional 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 (IPO), 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 also 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 by Glaister Ennor, a highly regarded New Zealand firm with long-standing ties to the property and investment communities in Australasia. Glaister Ennor has engaged Philip Skelton QC as Senior Counsel for the claim.
IMF Bentham Investment Manager, Gavin Beardsell, said: “The litigation will be funded on a no-win-no-pay basis by IMF Bentham with all costs underwritten by IMF Bentham."
How can CBL shareholders participate in the action?
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 sign up to participate in the action.
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 mum and dad shareholders whose investment in CBL has been lost due to the company’s alleged misconduct.”