Nuix (ASX:NXL) share price falls as warrant to search offices issued

Just when some market watchers might have thought it couldn't get worse, Nuix was handed a warrant…

| More on:
Man looking concerned head in hands at laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Nuix Ltd (ASX: NXL) have fallen today following news the company's Sydney offices have been raided by law enforcement. At close of trading, the Nuix share price was down 1.92%, with shares swapping hands for $2.56.

Nuix announced it had received a search warrant from an unnamed body at around 11.30 am this morning. Until then, its shares had been enjoying a day in the green. An hour later, The Nuix share price had fallen by 3.97%.

Let's take a closer look at what law enforcement might be doing in the software company's office.

Warrant issued

According to Nuix's release, a warrant was issued today to search the company's Sydney office.

The warrant's issuer is seeking documents relating to an individual's affairs. Nuix didn't name the individual.

Nuix stated the warrant was nothing to do with wrongdoing by the company.

According to reporting by the Australian Financial Review (AFR), the Australian Federal Police (AFP) issued the warrant.

The AFP is reportedly assisting the Australian Securities and Investment Commission (ASIC) in its criminal investigation into Nuix.

The AFR reported the criminal investigation is related to Nuix's initial public offering (IPO).

As The Motley Fool Australia has previously reported, the corporate watchdog is said to be investigating Nuix and its major shareholder Macquarie Group Ltd (ASX: MQG) over allegations Nuix's prospectus included inflated forecasts. The investigation reportedly began earlier this month.

ASIC was blasted in Parliament last week over its alleged failure to regulate the software company's IPO, which resulted in investors losing nearly $3 billion.

Additionally, the AFP began investigating Nuix's co-founder and former-chair Tony Castagna last month. The investigation relates to an options package reportedly sold to Castagna by Nuix that could have been backdated. The options are said to have been cashed out for $80 million at Nuix's float.

Nuix share price snapshot

Once hailed as the ASX's future market darling, Nuix has turned out to be one of its most nail-biting rollercoasters.

Currently, the Nuix share price is 68% lower than it was when it debuted on the ASX in December 2020.

The company has a market capitalisation of around $828 million, with approximately 317 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

What's happening with ASX 200 tech shares following the Nasdaq rout?

Aussie tech investors will be eyeing the big retrace in the Nasdaq overnight.

Read more »

Lithium ion batteries
Earnings Results

Needs a recharge: Novonix share price sees red after Q3 earnings

Investors were likely expecting a tad more.

Read more »

Two boys in business suits holding handfuls of money
International Stock News

Here are the US stocks that just delivered James Packer a $590 million profit

US tech continues to dominate.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX tech stock just leapt 26% on accelerating growth

Here’s what’s grabbing investor interest.

Read more »

A woman screams and holds her hands up in frustration.
Technology Shares

Cettire shares crash 17% on sinking profits

This online retailer has had a tough start to FY 2025. Here's what you need to know.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why this top broker just upgraded DroneShield shares

Bell Potter sees recent share price weakness as a buying opportunity for investors.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
Technology Shares

Big Tech could make or break ASX shares this week. Here's why

This week will be huge from an earnings perspective.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
AI Stocks

Down 12% in a week. Why are Appen shares sinking again?

The tech stock continues its slide today.

Read more »