)
ASX listed Nuix (ASX: NXL) today announced the corporate watchdog has dropped two investigations into the software company’s financial statements and prospectus, but remains under the microscope over market disclosure.
As per an ASX announcement, Nuix says it has been notified by the Australian Securities and Investment Commission (ASIC) that the watchdog has completed aspects of its investigation relating to the software company’s financial statements for the 2018, 2019 and 2020 financial years.
In addition, the investigation into Nuix’s initial public offering (IPO) has been dropped, with ASIC determining it will not take any further action in relation to those matters.
However, ASIC’s investigation into Nuix’s market disclosure in the period since listing is not yet complete.
“Nuix continues to cooperate fully with these investigations,” Nuix says.
The ASIC investigations were launched after Nuix’s spectacular fall from grace following its December 2020 IPO, with shares still trading at less than half of the $5.31 listing price.
This dive also attracted the attention of class action law firm Shine Lawyers, which is alleging on behalf of shareholders that the company beached disclosure obligations and provided investors with an inadequate guidance on revenue and misleading sales forecasts.
Phi Finney McDonald also launched a class action against Nuix about the company’s Prospectus and the software company’s disclosure concerning forecast FY21 revenue.
PFM is alleging that Nuix contravened sections of the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth).
Shareholders have responded positively to this morning’s update, with NXL trading up 5.96 per cent to $1.60 per share at 10.22am AEDT.
Get our daily business news
Sign up to our free email news updates.
)
)
)
)
)
