ASIC sues Nuix Limited for breaches and misleading conduct

ASIC has begun proceedings in the Federal Court against Nuix Limited (ASX: NXL) for supposed constant disclosure breaches along with misleading conduct. Other than this, ASIC has brought proceedings against Nuix board members for breaches of their directors’ duties.

As per ASIC, Nuix made misleading or deceptive statements when confirming its Prospectus FY2021 forecasts for statutory revenue and for annualised contract value in announcements to the ASX on 26 February 2021 and 8 March 2021. ASIC alleges that NUIX was aware that annualised contract value for FY2021 was substantially below the forecast. Thus, making the announcements misleading and needed corrective disclosure

Besides, ASIC alleged NXL for breaching its continuous disclosure obligations. It failed to:

• Disclose its 1H FY2021 ACV result from 18 January 2021 until 26 February 2021 when it published its half year results.
• Make corrective revelation concerning the statements made to the ASX on 26 February and 8 March 2021.
• Announce a downgrade to its Prospectus forecasts from 13 April 2021 after FY2021 annualised contract value and statutory revenue had been reforecast.

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