Two of Canada’s largest pension funds are named in a US$4.6 billion class action by the employees of a New Zealand-based software company.
About 200 financial technology workers at FNZ launched a lawsuit alleging the Caisse de dépôt et placement du Québec, CPP Investments and other institutional investors “used their control of the FNZ board to execute three capital raises in 2024 and 2025 on terms that reduced to near zero the value of shares held by the employees who built the company,” according to a press release.
These allegations haven’t been tested in court yet. The employee group said the High Court of New Zealand scheduled the first public hearing for this case on May 12, 2026. It also was filed against FNZ Group itself and 17 of its current and former directors.
CPP Investments first committed 1.1 billion in FNZ back in 2022 as part of an equity funding transaction. For its part, the Caisse first invested in the fintech company in 2018.
A report from the Canadian Press noted FNZ said directors have “at all times acted in the best interests of the company,” while its institutional investors have demonstrated a long-term commitment to the business.
“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, shareholder and former FNZ employee, in a statement.