The CBL Class Action is the legal action against the former CBL directors arising from false or misleading statements made in the IPO documents in September 2015 and ongoing breach of the continuous disclosure obligations by failing to disclose material information about its financial position to the market.
What is the CBL Class Action about?
What is a class action?
A class action is legal action brought on behalf of a group of people who have the same or similar legal rights. One or more people in the group act as the representative plaintiff for the whole group.
Class actions allow access to justice for people who may not be able to bring their own individual legal action against a defendant.
Legal action against the former CBL directors is likely the only avenue now left available for shareholders of CBL to seek compensation for the losses they have suffered as a result of the collapse of the company.
Should I join the class action?
The CBL Class Action is open to all shareholders of CBL Corporation Limited (in liquidation). To become a plaintiff, you must have purchased shares in the CBL public share offering undertaken in 2015 or acquired them subsequently to the offering. Contact us for more information.
How do I know I am eligible to join the class action?
How do I join the class action?
If you purchased shares in CBL Corporation Limited (in liquidation) or acquired them subsequent to the public offering in 2015, you can register your interest in joining the class action by clicking here.
What documentation will I need?
You will need documentation relating to the purchase or acquisition of your shares in CBL.
How much does it cost to join the class action?
There is no upfront cost to joining the class action.
Who is funding the class action?
New Zealand’s pre-eminent litigation funder, LPF Group, is funding the litigation on a success fee, at no upfront cost to the plaintiffs. LPF will be entitled to repayment of the costs it has funded and to its fees, out of any proceeds from the case.
Who is running the litigation?
A CBL Class Action Claim Committee has been established to represent the plaintiffs in all matters relating to the class action. The Committee will work with the lawyers and LPF Group to manage the claim on behalf of the plaintiffs. They will be responsible for giving instructions to the lawyers and ensuring plaintiffs interests are represented.
The Committee has engaged a highly experienced legal team who have a deep understanding of the New Zealand legal and regulatory framework. The team consists of Justin Smith QC, Mike Colson, Jonathan Orpin-Dowell and law firm Meredith Connell.
Do I need to become a plaintiff to be entitled to a payment from the class action it is successful?
Yes. Only plaintiffs to the proceedings will be entitled to their share of any compensation arising from a successful outcome of the class action.
How much is my claim?
The amount of your claim will be the total estimated loss you have suffered as a result of CBL Corporation being placed into liquidation. The formula for determining your loss will be confirmed in upcoming court proceedings.
What do I get if the class action is successful?
We expect any successful outcome of the claim to be delivered through a final judgment of the Court or through a settlement reached with the defendants. From the proceeds of the claim, the funding advanced by LPF in relation to the claim will first be deducted and repaid together with LPF's success fee, with the rest being available for distribution to each plaintiff.
Will I have to pay anything if the legal proceedings are not successful?
New Zealand’s pre-eminent litigation funder, LPF Group, is funding the litigation on a success fee basis, at no cost to the plaintiffs if the proceedings are not successful.
How long is the legal process likely to take?
The time taken to complete a legal process is dependent upon a number of factors, including the availability of the courts and the position and tactics that may be adopted by the defendants. It is estimated by the legal team it could take between two and four years for this class action to be finally decided.
What happens now?
The CBL Class Action Statement of Claim will be filed in the High Court in Wellington in October.
Will my personal details be kept private?
Your personal information will only be used for the purpose of the legal proceedings as required by the Court, or by law. The Privacy Act 1993 also applies to any personal information provided.
What documents do I need to keep as part of the class action?
You will be required to keep all documentation relating to the purchase or acquisition of shares in CBL Corporation and all communications with CBL Corporation.