IMF Bentham and Glaister Ennor announce the filing of an application in the New Zealand High Court in Auckland seeking leave to commence a class action against CBL Corporation (in liquidation)

Contact:
Ewen McNee
Investment Manager | +61 2 8223 3567 | [email protected]
Marella Gibson
Chief Marketing Officer - Australia and Asia | +61 2 8223 3517 | [email protected]

CBL Corporation shareholders are invited to sign up to participate in the class action

AUCKLAND, 2 December 2019: International dispute financier IMF Bentham Limited (ASX:IMF) and New Zealand law firm Glaister Ennor announced today the filing of an application in the NZ High Court in Auckland seeking leave to commence a class action against failed NZ insurance company, CBL Corporation (in liquidation) (CBL), which will seek to recover compensation for shareholders of CBL.

The collapse of CBL has impacted shareholders across the world, including mum and dad investors in New Zealand and Australia who have seen their investment in CBL wiped out. The action alleges that 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 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 (NZ). 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 claim has been filed in the High Court of New Zealand in Auckland. 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 continued to receive strong interest in the IMF funded action from both retail and institutional investors in New Zealand and abroad, and we have signed up a significant amount of shareholders who together purchased tens of millions of shares in CBL and whose investment 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 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 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/.