FNZ employee shareholders claim an early win

Employee shareholders of FNZ, who have filed a US$4.6 billion class action against FNZ Group and 17 of its current and former directors, claim to have secured an early victory.

FNZ and its co-defendants' many counsel lodged seven separate memoranda and two affidavits to halt the court proceedings.

However, the New Zealand High Court judge rejected FNZ's motion to stay the proceedings, describing the memoranda as falling like snow on the Registry. The judge agreed with the single memorandum lodged by the employee shareholders.

This is a significant win for the employee shareholders, who allege that conflicted directors deliberately transferred wealth away from them to the same institutional and private equity investors they represent.