The Financial Markets Authority (FMA) is taking a civil case against some of those involved in a failed takeover attempt of Abano Healthcare.
The authority's case is against Healthcare Industry Limited, one of whose directors, Peter Hutson, is a former Abano director, and Australian private equity company Archer Capital Pty Ltd, both of which were involved in the failed takeover attempt.
The FMA has alleged the companies failed to inform the market early enough of their agreement.
It alleges that agreement existed before 16 September last year, when Archer and Healthcare filed notices outlining the agreement.
Under the Securities Markets Act, failing to file substantial shareholder notices in a timely fashion carries a penalty of up to $1 million.
Apology to James Reeves
In an earlier version of this story, Radio New Zealand said James Reeves was among those against whom the Financial Markets Authority was taking action. That is incorrect. Radio New Zealand accepts it was in error and apologises to Mr Reeves.