In New Zealand, a new litigation funder called LPF Group has been formed to to help investors fund legal action against companies and directors.
According to Brian Gaynor of the New Zealand Herald, LPF Group may provide funding in situations including “receiverships, breaches of continuous disclosure rules, insider trading, inaccurate prospectuses and valuations, related party transactions, breaches of directors’ duties and breaches of care by financial advisers.” He points to several recent such situations involving Hanover, Bridgecorp, Blue Chip, the ING income funds, Vestar, Feltex and Tranz Rail, where the availability of litigation funding could have benefited investors.
Litigation funders are outside parties to the litigation that fund and manage a legal action in return for a percentage (reportedly 20-40%) of a successful claim. They receive nothing, however, if the case is unsuccessful.
Read the New Zealand Herald article
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As an “aggrieved party” in the Nathan Finanance debacle, I, and other family members would be interested in joining a litigation group. I believe that it is unacceptable for the directors to retain or conceal funds in their trust accounts.
I have evidence of fraudulent advertising sent out by Nathans 1 week before collapse.
I look forward to further information regarding your organisation in New Zealand.