Former prime minister Dame Jenny Shipley is strongly denying any wrongdoing in connection with the collapse of the construction company Mainzeal in 2013.
The liquidators of the company have filed a civil claim against her and others, including Sir Paul Collins.
A co-liquidator, Andrew Bethell, has confirmed legal proceedings have been filed, including allegations of a breach of directorial duties.
He said Dame Jenny and Sir Paul Collins were among the defendants.
Dame Jenny's lawyer, Michael Arthur, said the liquidators were seeking damages, and it would take weeks to review the claim.
But he said she strongly denied the allegations and the claim would be vigourously defended.
Mr Bethell said the liquidators had so far received claims worth more than $150 million from unsecured creditors.
Mainzeal was the country's third largest construction company before it collapsed in 2013.
Dame Jenny Shipley chaired the board at one point, and was New Zealand's first female Prime Minister, serving from 1997 to 1999.