Nuix share price slides amid ASIC lawsuit

Nuix might be in for a lengthy process with ASIC.

| More on:
A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices

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

Key points

  • Nuix shares are drifting lower today 
  • Investors are reacting to a company announcement 
  • The Nuix share price is down more than 75% in the past 12 months 

The Nuix Ltd (ASX: NXL) share price is trudging lower in afternoon trade on Thursday.

At the time of writing, Nuix shares are swapping hands at 59.75 cents a piece after drifting more than 2% lower.

In broad sector moves, the S&P/ASX All Technology index (ASX: XTX) has stretched up nearly 2% after a gain early in the session.

What's up with the Nuix share price?

The share caught the attention of sellers today following a company announcement.

Nuix advised that the Australian Securities and Investment Commission (ASIC) has commenced civil proceedings in the Federal Court of Australia against the company and its directors.

This was for a period from 18 January 2021 to 21 April 2021, the release says, and stems from Nuix's disclosure of certain figures in its annual numbers.

Specifically, ASIC is concerned with allegedly deficient reporting of the company's "Annualised Contract Vale (ACV)" figure in its annual report.

The release mentioned:

ASIC alleges that aspects of the company's market disclosure in that period contravened provisions of the Corporations Act and ASIC Act and that the relevant directors breached their duties in respect of that disclosure.

ASIC isn't taking any decisions lightly, either.

It is seeking a 'please explain' from Nuix, penalties against the company, and disqualification orders against the directors involved.

To push back, Nuix has denied all allegations made against it and its directors, noting it intends to defend against all of the proceedings.

It was not able to provide commentary due to the ongoing nature of the case.

Meanwhile, the Nuix share price is down more than 75% in the past 12 months and is down 73% this year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Happy work colleagues give each other a fist pump.
Technology Shares

Guess which ASX 200 technology stock has outperformed Nvidia over the past 5 years?

This company has been nothing short of impressive.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Why Goldman Sachs rates this ASX tech share as a top buy

Let's see why the broker rates this stock highly right now.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

WiseTech shares have surged 34% since April. Is it too late to buy?

Can WiseTech shares keep charging higher? Here’s what this investing expert expects.

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Technology Shares

Up 87% in 12 months: Why this ASX tech share is still a top buy

This technology business still has loads of potential, according to a fund manager.

Read more »

a group of three cybersecurity experts stand with satisfied looks on their faces with one holding a laptop computer while he group stands in front of a large bank of computers and electronic equipment.
Technology Shares

2 ASX 200 tech stocks Morgans rates as buys

The leading broker has named a couple of shares to buy right now.

Read more »