FMA sues Booster over wine investments

Booster says it “strongly disputes” the allegations and that it will “defend its position vigorously.”  

The FMA says it alleges 75 causes of action against the company and named individuals, saying those people “used their positions improperly as directors or senior managers in circumstances where conflicts of interest and related party benefits were not properly managed.”

Each contravention has a maximum penalty of $600,000 for BMI and $200,000 for an individual but the FMA says, if the court agrees, a court-directed inquiry would determine what harm or loss any investors suffered as a result of the breaches.

The FMA says the breaches occurred between 2017 and 2022 arising from investments the company made into the related limited partnership, Booster Tahi (Tahi), which in turn invested into a series of domestic wine businesses that were later amalgamated into the Booster Wine Group (BWG).