It certainly is a very big day for Nuix Ltd (ASX: NXL) shares on Tuesday and investors will no doubt be watching them like a hawk.
Image source: Getty Images
What's going on with Nuix shares?
This morning, the investigative analytics and intelligence software provider requested a trading halt before the market open.
This was because the Federal Court of Australia indicated that it plans to deliver its judgment in respect to a claim made by its former CEO, Edward Sheehy.
Mr Sheehy filed proceedings in the Federal Court in October 2020 claiming that he validly exercised 453,273 options in Nuix in January 2020 which entitled him to be issued with 22,663,650 shares.
Sheehy also claims that he would then have sold these shares long before the Nuix share price had collapsed, which caused him to suffer damage.
All up, the former CEO sought declarations as to his entitlements and an award of damages of up to $183 million plus interest.
To put that into context, at the close of play on Monday, Nuix had a market capitalisation of $287 million.
What's the latest?
The good news for Nuix and its shareholders is that the Federal Court has dismissed the claim.
According to the AFR, Justice John Halley highlighted that this dispute had already been dealt with in the supreme court in 2019 and that these options were only exercisable if there had been a sale of the business prior to 2010.
He said: "I'm otherwise persuaded there's been no breach of that agreement because there's been no sale of the business of Nuix."
What now?
Given how this very dark cloud has been hanging over the company for some time, the news that the matter is now over could give Nuix shares an almighty boost when they return to trade.
And while the company has requested a halt until Thursday, it is possible that we will see its shares resume trade later today.
