LPF Group, the Auckland-based funder of a class action against the directors of CBL Corp, has complained to the Australian Securities and Investments Commission (ASIC) about the funder of a potential rival class action against the company itself rather than the directors.
CBL and its subsidiaries went into liquidation, with a market value of $747 million when its shares were suspended from trading on the NZX and ASX in February 2018.
Gavin Beardsell, investment manager at ASX-listed IMF Bentham, previously said that their litigation either would continue with the liquidators’ consent or the local law firm it had engaged would apply to the New Zealand High Court for leave to proceed against CBL.
“If we’re successful, we anticipate there will be insurance to pay any settlement or judgment,” Beardsell previously told BusinessDesk. “We don’t know who the insurer is and we intend to take steps at an early stage” to find out.
Phil Newland, director of LPF, pointed out that IMF Bentham’s statements and actions prompted them to complain to the regulator.
“Our concern is they’ve been representing to would-be plaintiffs that suing only the company in liquidation is a perfectly customary thing to do,” Newland said, as reported by NZ Herald. “We don’t want the shareholders of CBL to be confused because of the actions IMF (Bentham) have taken.”
Beardsell believes otherwise – insisting that LPF’s complaint “has no basis. These complaints are a weapon of choice by this funder.”
