Intueri Shareholders Seek Summary Judgment
Former shareholders of Intueri Education Group Limited have today filed legal proceedings in the Auckland High Court against some of the former directors of the company and the promoters of its initial public offering in April 2014: Australian-listed company, Arowana International Limited, and its directors at the time. The claims are based on misleading statements in the IPO materials, and (in relation to certain directors) breaches of continuous disclosure obligations.
After the IPO process, Arowana International received net cash proceeds of approximately $100m after selling down its interest in Intueri.
Intueri was put into administration in June 2017 and into liquidation in September 2017, less than 3.5 years after it was publicly listed in New Zealand and Australia.
In the proceedings, the shareholders are seeking summary judgment on liability in relation to alleged misleading statements in the Investment Statement and Prospectus on the grounds that certain defendants have no arguable defence to the claims. Solicitor for the plaintiffs, Adina Thorn, says: “The plaintiffs allege that the IPO materials contained misleading statements, on the faith of which they invested in Intueri, and suffered significant losses.”
The misleading statements relate to enrolment numbers and course completion rates for Quantum Education Group, a business operating private training establishments. Intueri acquired Quantum for $53m from funds raised in the IPO ($177m in total). The plaintiffs also allege that the defendants failed to disclose the risk to the business of Quantum’s practices in respect of students (many of whom paid for courses using government loans) who withdrew early from courses but were charged full course fees.
The action is funded by New Zealand-based litigation funder, LPF Group. If you held shares in Intueri Education Group Limited and wish to register, or to know more, please visit:
www.adinathorn.co.nz or email firstname.lastname@example.org