Court Report: A Hotchin Hanover
Hamish McNicol talks about Mark Hotchin's desire to prove the Hanover prospectus untrue. With special audio feature.
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In a startling turnaround this week, former Hanover director Mark Hotchin has committed to proving at civil trial a prospectus issued by the failed finance company did contain untrue statements; yes, did contain.
This is despite “very strong” public statements following an $18 million settlement with the Financial Markets Authority announced last June, in which the Hanover defendants claimed they would not have been found liable at trial.
On Tuesday, the Supreme Court ruled Mark Hotchin could pursue a claim against New Zealand Guardian Trust to contribute to the settlement with the FMA.
But he has accepted such a claim will mean he needs to prove he is “liable” to investors, a position criticised as “hypocritical” and “cynical” but some of the judges.
The court unanimously held the settlement with the FMA, which occurred after the hearing, did not prevent the claim but required Mr Hotchin’s acceptance “he will need to prove at trial that he is liable in tort to the investors.”
“Mr Hotchin has now accepted that he will have to prove his negligence in this regard," Justice Susan Glazebrook said.
"Essentially, therefore, he is seeking contribution on the basis that Guardian Trust did not stop his wrongdoing soon enough."
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Thu, 17 Mar 2016
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Court Report: A Hotchin Hanover
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