ASIC is suing Nuix’s board of directors for allegedly misleading, deceptive conduct

The corporate regulator is taking legal action against struggling tech company Nuix and its board for alleged breaches of their ongoing disclosure obligations, while also purging insider trading allegations against the company’s former CFO Stephen Doyle and his brother Ross.

The Australian Securities and Investments Commission (ASIC) announced on Thursday that it had filed filings in federal court alleging that Nuix’s board of directors maintained the statutory revenue and annual contract value (ACV) projections in the company’s prospectus, although he knew the numbers were significantly lower.

The lawsuit comes through after a joint investigation The Sydney Morning Herald, The Age and The Australian Financial Report last May revealed serious culture and governance issues within Nuix and a blurred history of consistently missing budgets and sales forecasts.

Troubled Tech Nuix is ​​being taken to court by corporate regulators.

Troubled Tech Nuix is ​​being taken to court by corporate regulators.

Macquarie-backed Nuix, which offers investigative analysis and intelligence software, was the largest initial public offering (IPO) of 2020. It traded at an issue price of $5.31 in December 2020 and rose to over $11 in January , when investors opened its 330-page prospectus, then plummeted 32 percent in February after investors were caught off guard by the company’s half-year results.

A prospectus is a formal statement filed with the regulator that contains information and context to help investors make informed decisions when evaluating an investment.

ASIC said earlier this year that it had completed an investigation into statements in Nuix’s prospectus that allegedly misrepresented the software company as a growth stock to investors, and said it was taking no action.

However, in a case filed in federal court late Wednesday, ASIC alleges that the data analytics firm made misleading or deceptive statements in its updates to the ASX in February and March last year that corroborated projections contained in the prospectus.

The regulator also alleges that Nuix breached its ongoing disclosure requirements, including by failing to announce a downgrade after re-projecting its annualized contract value and fiscal 2021 statutory revenue.

Nuix Chairman Jeffrey Bleich, Rodney Vawdrey, Susan Thomas, Daniel Phillips and Iain Lobban are alleged to have breached their duties by failing to take reasonable steps to prevent Nuix from making misleading statements and breaching ongoing disclosure requirements to have. ASIC is suing Nuix’s board of directors for allegedly misleading, deceptive conduct

Brian Lowry

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button