The only institutional plaintiff in a $4.6bn class action against global fintech FNZ has withdrawn, leaving the case without institutional support.
Court filings in New Zealand confirm that Summit Partners has pulled out, though the impact of its sudden departure on the proceedings remains unclear.
The lawsuit, launched in May by Class B shareholders holding around 23% of FNZ’s equity — largely current and former employees — alleges unfair treatment and significant dilution of their holdings.
At the heart of the dispute are changes to FNZ’s constitution and a series of board decisions said to favour institutional and private equity stakeholders.
Shareholders claim that between May 2024 and April 2025, the board carried out three equity raises worth $1.5bn through preference shares offering returns of 100% to 200%, diluting employee investors by an estimated $4.5bn.
The case has already faced procedural hurdles.
Last month, the Grand Court of the Cayman Islands injuncted fellow claimant Kiwi CayLP on procedural grounds, while the New Zealand High Court dismissed FNZ’s bid to halt the case.
FNZ and its co-defendants had sought to block proceedings through seven separate memoranda and two affidavits.
Both FNZ and Summit Partners declined to comment.
