The High Court of New Zealand has set a date in May for the first material hearing in the USD 4.6bn class action lawsuit against FNZ Group and 17 of its current and former directors.
The two-day hearing will address key preliminary issues in what is believed to be one of the largest class actions globally, brought by a group of former FNZ employee shareholders who allege their shareholdings were expropriated.
The decision to set a hearing follows the court’s appointment of a third plaintiff last month, which allowed the case to proceed despite previous efforts by FNZ to have it stayed.
“For months, FNZ has tried every tactic to avoid accountability and tie this case up in legal minutia. The court’s decision to set a hearing date, and overrule FNZ’s attempt to have the case stayed, reaffirms FNZ attempts to kill the case have all failed,” said a spokesperson for the employee shareholders
The development comes as FNZ undergoes significant management and strategic changes following the takeover by Motive Partners.
After a period of cost-cutting in late 2023, which saw 1,100 staff depart, the business reversed course in 2024 with a major hiring drive.
According to claims in the lawsuit, more than 1,500 new employees were added over the following 12 months, primarily in higher-cost regions.
However, FNZ has recently begun another round of restructuring and headcount reduction after challenges delivering anticipated growth and platform improvements.
The employee shareholders allege that the company’s expansion strategy, together with capital requirements, has reduced or eliminated remaining value in their shareholding. FNZ has not publicly commented on those claims.
The case is also drawing wider attention due to its potential implications for corporate governance, private equity ownership and shareholder rights, particularly in founder-led and employee-backed businesses.
The hearing in May will be the first substantive opportunity for both sides to present arguments before the court.
