Adina Thorn Lawyers
Adina Thorn Lawyers

Intueri Shareholder Class Action – Background

Intueri Shareholder Class Action


After an initial public offering commencing on 15 April 2014 (and heavily promoted by Australian private equity firm Arowana International Limited), Intueri Education Group Limited was listed on both the New Zealand Stock Exchange (NZX) and the Australian Stock Exchange (ASX) at a price of NZD$2.35 per share, raising NZD$177 million.

The proceeds were used to fund the acquisition of Quantum Education Group (comprising three private training establishments) for NZD$53 million. The stock exchange listing allowed Arowana to reduce its shareholding from 100% to 24.9%, netting over NZD$110 million to Arowana.

The proposed action relates to statements included in the IPO materials (Prospectus and Investment Statement) concerning the number of students enrolled in Quantum Education Group (4,628 enrolments in 2013) and the course completion rate in 2012. As found by a later Tertiary Education Commission (TEC) investigation, only 1,741 of these enrolments had been reported to TEC, with the remainder consisting of withdrawn enrolments.

This practice allowed Quantum to retain the fees paid by the withdrawn students (often paid through student loans) but not have to report the withdrawal numbers, which would have affected its entitlement to government funding. Quantum was dependent on these practices to be profitable.

The proposed action will include claims against Intueri’s former directors and promoters in respect of those statements, and in respect of breaches of continuous disclosure obligations (requiring Intueri to make ongoing disclosure of material information to the market).

The claim is proposed to be funded by a subsidiary of LPF Group Ltd, New Zealand’s largest and most established litigation funder, on a “no win, no fee” basis. This means there will be no upfront cost to you.


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