The rise of the securities nondisclosure class action in New Zealand and views from Australian and global practice

Prompted by class action litigation reform in New Zealand, this article examines private civil class actions as a means of enforcing securities disclosure laws that regulate the New Zealand securities market. It describes the nature of the private securities class action generally and the normative, regulatory and procedural aspects including views from Australian and American practice before examining the importance of market disclosure and current legal regulation of securities disclosure in New Zealand. Recent public enforcement of securities disclosure in that country (particularly of continuous disclosure laws) including notable actions is reviewed, opening the discussion as to the role for private enforcement where the question is posed as to whether securities class actions can or do improve corporate disclosure including the effects of private securities class actions as remedial as well as preventative. The article also notes recent changes in continuous disclosure laws in Australia before concluding with reference to the New Zealand Law Commission’s enquiry into class actions and litigation funding noting particularly their relevance to securities class actions in New Zealand