Millstreet Pushed Cobalt Supplier to Wipe Out Equity, Suit Says

Jervois Global Ltd. shareholders’ equity is on the verge of being extinguished in a voluntary bankruptcy instigated by financier Millstreet Capital Management LLC, investors say in a proposed class action filed Thursday.

Jervois, related entities, company directors, and Millstreet tried to recapitalize Jervois—"despite a questionable need to do so"—without shareholder knowledge or approval, two Australian investment funds say. They filed their suit for violation of US, Australian, and Canadian laws in the US District Court for the Southern District of New York.

Shares in Jervois, a cobalt and nickel supplier with operations in several countries, trade on the Australian Securities ...