Cayman ruling puts FNZ staff case in jeopardy
From Investment News New Zealand
FNZ employee-shareholders have hit a snag in a US$4.6 billion legal case against institutional owners after a Cayman Islands court ruled an entity pursuing the claim breached due process.
In a finding handed down on December 8 but published in January this year, Cayman Grand Court Justice David Doyle threw out a July 2025 decision by the Kiwi GP Cayco board to launch a class action in NZ on behalf of hundreds of current and former FNZ staff-shareholders.
Doyle found the Kiwi GP Cayco board meeting of July 24 last year was “inquorate” with any resolutions passed at the time – including a call to launch the NZ legal action – deemed “invalid”.
Appearing as a second defendant in the case, Kiwi GP Cayco independent director, Michael Pearson, consented to the court ruling that effectively nullifies the NZ legal action for now. The Cayman-based Pearson will also have to cover the costs of plaintiff, Falcon NewCo – the company representing the FNZ institutional shareholders.
Despite the setback, Justice Doyle confirmed the Kiwi GP Cayco board could restart the NZ legal case “provided that any such consideration is undertaken and any resolutions passed are in accordance” with compliant governance procedures.
The Cayman court applied a temporary injunction in August on the Kiwi GP Cayco decisions regarding the FNZ move ahead of the final ruling.
FNZ has already lobbed several legal bids to stop the class action but the NZ High Court slated a preliminary two-day hearing for May this year to consider opening arguments: it’s unclear whether the latest Cayman decision will delay the NZ hearing or scupper the action entirely.
The group of reportedly 300-plus FNZ past and present employee shareholders, represented by KiwiCay LP and Peter Burge, are seeking redress of US$4.6 billion after alleging the firm’s institutional owners unfairly diluted the ‘B-class’ equity tranches following a series of capital-raises over the previous 18 months or so.
FNZ institutional shareholders including Caisse de dépôt et placement du Québec (CPDQ), Generation Investment Management, Canada Pension Plan Investment Board (CPP Investments), Motive Partners and Temasek have tipped in about US$2.1 billion of extra equity as the firm sought to shore-up its capital buffers after reporting combined losses of US$1.5 billion over the two financial years to the end of 2024.
The Wellington-founded company, now led by Blythe Masters, also restructured US$2.1 billion of debt in 2024, pushing out maturity dates.
In January this year, the recently appointed chair of the FNZ UK business, Alison Rose, was also named as director on the NZ-domiciled global operating entity, FNZ Group.
FNZ last reported about US$2.2 trillion under administration across multiple jurisdictions with a staff-count of more than 7,000.
For more on this story go to: FNZ
