Glaister Ennor have joined the class action arena, joining with Australian-based litigation funder IMF Bentham to launch an action on behalf of CBL Corp shareholders on the basis of alleged failure to observe disclosure rules from the time of the initial public offering in September 2015.
CBL’s shares were suspended from trading on both the NZX and ASX in February last year after the company revealed the Reserve Bank had been questioning its solvency.
The company claimed it was bound by the central bank’s confidentiality order from telling the market any earlier.
CBL and its subsidiaries have since gone into liquidation.
IMF Bentham claims the support from a number of CBL’s institutional investors and is now seeking individual shareholders to sign onto its class action with Glaister Ennor.
IMF Bentham investment manager Gavin Beardsell says the amount sought will depend on how many shareholders sign onto the action, the extent of their shareholdings, and the amount the courts deem they have lost.
“It would be safe to say it would be tens of millions of dollars,” The Herald reported.
Glaister Ennor managing partner Jack Porus (pictured) and his fellow partner Mitch Singh will be the solicitors representing the shareholders and they have engaged Philip Skelton, QC, as their barrister.
Skelton has been arguing the class action against Southern Response on behalf of Brendan and Colleen Ross, who are represented by solicitor Grant Cameron of GCA Lawyers.
Last month, the Court of Appeal ruled that that case could proceed on an “opt-out” basis, meaning all the more than 3,000 people in the same position as the Ross couple are automatically included unless they actively opt out, which is the first time a New Zealand court has permitted the opt-out case.