NEW ZEALAND Trends and Developments Contributed by: Kate Cornegé and Jessica Phillips, Tompkins Wake
• In 2024, a confidential settlement was reached in the “Intueri” litigation, in which 282 investors brought claims alleging that documents supporting a company’s initial public offering were misleading and that the company had breached its continu- ous disclosure requirements. The regulator had decided not to take action. While the terms of the settlement are confidential, it has been described in the media as “astonishingly good” and “a good result for class action claims generally.” In Febru- ary 2025, the High Court approved the proposed methodology for distributing settlement funds to the claimants. • In October 2025, one of the defendants in the banking class action, ASB Bank, agreed to pay NZD135.6 million to resolve the claim without any admission of liability. The settlement has been described as New Zealand’s largest settlement involving a bank. This settlement is subject to approval of the High Court. Observations and emerging themes The authors expect to see an ongoing increase in the number and range of class actions in the future. Areas in which the authors expect to see increased activity include the following. • Privacy and cyber-security – cyber-security remains an area of concern for New Zealand busi- nesses, and the authors have seen a rise in data breach class actions overseas, including the sub- stantial Optus and Medibank claims in Australia. The international rise in class actions involving cyber breaches is likely to be seen in New Zealand in the not-too-distant future. Class actions may also follow on from the Privacy Commissioner’s investigations or organisations’ compliance with mandatory reporting obligations. • Climate-related claims – like other countries, New Zealand is experiencing an increase in climate- change-related litigation generally. In 2024, the Supreme Court accepted the possibility that carbon emitters could face civil liability for their emissions. That decision was at the strike-out stage, but if liability is confirmed following trial (anticipated to be in April 2027) the door may be opened to claims against other emitters by other claimants. Climate-related claims may take many
forms, and many may lend themselves to col- lective redress, including consumer claims (eg, “greenwashing”) and investor claims as well as tort claims. For example, a potential class action against Hino Motors is currently being investigated, including allegations that Hino misreported fuel efficiency and emissions engine performance data. With the increasing frequency of climate‑related weather events, there may also be a rise in claims against the Crown and local authorities, particularly where infrastructure failures have contributed to community‑wide harm. • Action on behalf of Māori claimants – despite expectations that class actions could serve as an effective vehicle for Māori claimants, New Zealand has not yet seen a rise in iwi ‑led representative proceedings. The ability of an iwi or hapū to act as one plaintiff on behalf of its members, or a leader to represent a group, may mean there is less need for a separate representative action process. How- ever, general litigation trends in New Zealand sug- gest that there is still room for development in this area. There is a great deal of potential for climate- related claims by Māori communities affected by environmental degradation and infrastructure failures, and class actions provide an additional tool for communities to consider in framing their political and legal strategies. • Labour claims, including discrimination – the authors expect to see more labour-related rep- resentative actions following overseas trends. These may include claims relating to employment conditions, discrimination and harassment, as has occurred in Australia. Labour claims are dealt with in the specialist Employment Court, which has its own procedural rules to regulate group actions, but which may not have the flexibility of the High Court jurisdiction to manage the procedural and legal issues that arise in a representative claim. • Social justice – alongside commercially focused claims, class actions are emerging as an important tool for advancing social justice and accountability. Representative proceedings can give collective voice to groups affected by systemic wrongs and the authors expect to see this area continuing to develop, particularly where redress schemes put in place by the government or institutional defendants are perceived as insufficient by class members.
198 CHAMBERS.COM
Powered by FlippingBook