Booster loses discovery bid to look at rival transactions

In the High Court in Auckland, Justice Michael Arthur turned down the fund manager’s application, saying the evidence of industry practices might be relevant but probably wouldn’t be helpful to the expert witnesses in the FMA’s case against Booster accusing it of breaching related party transaction rules.

The judge ordered discovery for the FMA to provide documents it had created about industry conduct and practices, which the watchdog had offered the defendants.

The FMA claims Booster breached related party transaction rules through the way its Booster Tahi limited partnership used $70 million from the various schemes to build the Booster Wine Group, through 18 transactions and a change to the valuation methodology. Booster has rejected the claims, saying the wine group is delivering distributions to Tahi.

Read the full report by Paul McBeth at The Bottom Line