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Our lawsuit alleges the effect of three controversial equity raises executed by the FNZ Board in 2024 and 2025 transferred wealth from the employees who built the company (us) to the company’s institutional investors.
The raises amounted to US$1.5b in new capital, and we allege they were issued on unfair commercial terms.
The USD 1.5b capital was supplied by FNZ’s institutional shareholders, CDPQ, CPPIB, Temasek, Generation and Motive, who are also the majority of the board. This means they essentially issued the shares to themselves, on terms that they decided, at the expense of employees.
The effect of these transactions was a transfer of wealth from us, the employees who built the company, to these institutions who control the board. We claim this transfer is worth USD 4.6 billion.
Our claim alleges serious breaches of the New Zealand Companies Act, including minority shareholder oppression, directors not acting for a proper purpose, directors not acting in the best interests of the company and directors not acting with the care, skill and diligence that would be expected in these circumstances. Our claim has 16 allegations across these areas.