Legal tactics employed to silence plaintiff as FNZ class action escalates
- Written by PR Newswire Asia - Asian Spectator
LONDON, May 15, 2025 /PRNewswire/ - A mounting controversy is unfolding as FNZ, a global leader in financial services, faces a class action and continues to suppress its employee shareholders through legal tactics.
In a rapidly escalating dispute, legal representatives for the shareholders have pushed back against FNZ's continued attempts to shut down employee shareholders from engaging with media, saying, "they reveal a bullying approach to Class B shareholders." This follows previous attempts from FNZ to shut down employee shareholders' X account (formerly known as Twitter), which was established to share factual information on the rising issue.
The ongoing conflict began with a series of undisclosed constitutional changes by the board that removed protections for ordinary shareholders, then moved to equity issuances to its Institutional and Private Equity shareholders that control the board.
Between May 2024 and April 2025, the board undertook three equity raises totalling US$1.5 billion through the issuance of preference shares with 100% - 200% returns, effectively diluting employee shareholders by US$4.5 billion. They also put in place an $8.3 billion valuation threshold, which means employee shareholders will only be able to participate after this valuation is met.
FNZ B class shareholders have received several legal letters in as many days in an attempt to stop them from sharing their story. These are the very people that built the company over the past 20 years who are now set to lose everything they have worked so hard for.
In response to one of FNZ's legal letters, Class B shareholders' legal representatives at MC stated in their response, "It is hard to see your letter of today as anything other than another attempt to obtain the identities of our clients, in order to put improper pressure on them."
Despite the mounting legal intimidation, employee shareholders remain defiant and continue to demand a fair valuation for their shareholding.
They are proceeding to file a class action at the end of May against FNZ and its board in the High Court of New Zealand where FNZ is domiciled.
Authors: PR Newswire Asia - Asian Spectator
