Institutional investors allegedly leveraged control of the FNZ board to execute three capital raises in 2024 and 2025
Nearly 200 employee shareholders of global fintech firm FNZ are moving ahead with one of the world's "largest active class actions," a USD $4.6 billion claim that puts Quebec-based pension fund La Caisse right in the middle of the legal spotlight.
The move could draw fresh attention from the pension sector to governance and fiduciary oversight.
In a press release, announced today, Kiwi Cayco GP said that its board has authorized the continuation of legal proceedings tied to a USD $4.6 billion claim against FNZ Group and 17 current and former directors. The High Court of New Zealand has also scheduled the first public hearing for May 12, 2026.
La Caisse is FNZ’s principal shareholder and manages the retirement savings of millions of Quebecers. According to the press release, the employee shareholders allege that La Caisse and other institutional investors leveraged their control of the FNZ board to execute three capital raises in 2024 and 2025 on terms that effectively wiped out the value of employee-held shares.
The plaintiffs contend these transactions involved the issuance of preference shares and warrants on what they characterize as non-commercial terms.
Since the claim was filed in July 2025, FNZ and its co-defendants, including La Caisse, have mounted an aggressive defence strategy. The defendants submitted seven separate memoranda and two affidavits seeking to suspend proceedings, all of which were rejected by the High Court.
An additional injunction was pursued in the Grand Court of the Cayman Islands to prevent Kiwi Cayco GP from acting as plaintiff. That effort also failed.
"While the most recent developments represent a step in the right direction, we will remain cautious and vigilant against any further attempts to impede these proceedings, whether in New Zealand or elsewhere," said Mike Stevens, a shareholder and former FNZ employee in a statement.
