NZ wealth management firm FNZ faces $4.6 billion lawsuit from employee shareholders
Kiwi CayLP, representing FNZ's class B shareholders, alleged a share issuance unfairly shifted $1.5 billion in value to institutional investors and warned their equity could be wiped out if FNZ is valued below $8.3 billion in a sale or IPO.
The claim against FNZ's issuance of new preference shares and warrants on non-commercial terms during 2024 and 2025 was filed on Monday.
Kiwi CayLP said FNZ was last valued at $20 billion, with class B shareholders holding about 23%, or $4.6 billion.
"The claim alleges these transactions were approved by FNZ directors who carried significant conflicts of interest by also being employees and directors of the institutional and private equity investors who stood to benefit from these non-commercial transactions at the expense of FNZ employee shareholders," Kiwi CayLP said.
The lawsuit lists 16 instances where FNZ and its directors allegedly breached New Zealand corporate laws by acting oppressively, neglecting fiduciary duties, and misusing their powers.
"FNZ notes the claim filed in New Zealand and considers it to be entirely without merit," a spokesperson for the wealth management firm told Reuters in an emailed response.
The firm was founded in 2003, and principally operates in Australia, Canada, Germany, New Zealand, the United Kingdom, Singapore, South Africa and Sweden, and operates in the savings, investment and wealth management sectors.
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