ABOUT THE CBL CLASS ACTION
The CBL Class Action is a legal action for shareholders of CBL Corporation Limited ("CBL") against the former directors of CBL and the company itself (by seeking leave to sue CBL as a corporate entity).
The collapse of CBL in February 2018, just over two years after it was listed on the NZX and ASX, was one of the largest corporate failures in New Zealand's history.
The legal action seeks to hold the directors of the failed company to account for their actions and to gain compensation for the shareholders who have suffered significant financial losses as a result of the collapse of CBL. The legal action arises from false or misleading statements made in the IPO documents in September 2015 and ongoing breach of the continuous disclosure obligations in failing to disclose material information about its financial position to the market.
This class action is likely the only avenue now left available for shareholders to seek compensation for the losses that they have suffered as a result of the collapse of CBL.
Institutional investor, Harbour (Harbour Australasian Equity Fund) and Australian based Argo Investments Limited are both named as representative plaintiffs of the class action. Shareholders’ interests in the management of the proceedings will be represented by a committee including Harbour , Forsyth Barr and Argo Investments.
The shareholders have engaged a legal team who are highly experienced in commercial litigation and have a deep understanding of the New Zealand legal and regulatory framework. The team includes Justin Smith QC, Mike Colson, Jonathan Orpin-Dowell and law firm Meredith Connell.
New Zealand's pre-eminent litigation funder, LPF Group, is funding the litigation on a success fee basis at no upfront cost to the shareholders.
A CBL Class Action Litigation Committee has been established to represent the shareholders in all matters relating to the class action.