Nuix is facing its second class action about alleged misleading statements or omissions in relation to its initial public offering (IPO) prospectus.
Coming less than a week after Shine Lawyers filed its class action suit against the software vendor, the second case is being fielded by law firm Phi Finney McDonald on behalf of Daniel Joseph Batchelor and was filed on 23 November in the Supreme Court of Victoria.
Broadly, Phi Finney McDonald’s claim focused on Nuix’s listing on the Australian Securities Exchange (ASX) at an IPO price of $5.31 in December 2020, which included, among other things, its guidance for FY21.
However, its HY21 results, released in February 2021, had a 4 per cent dip in revenue, but claimed it could still meet its prospectus earning forecast. Regardless, its share price fell by 32 per cent by close of trade.
Then two months later in April, the software vendor revised its forecast, claiming it would not meet its prospectus guidance, resulting in a 15 per cent share price hit.
Further share price hits took place in May and June, which coincided with the airing of allegations around Nuix’s IPO, the announcement that the vendor would not make its revised forecast and an investigation by the Australian Securities Investment Commission (ASIC) into its then CFO Stephen Doyle.
Nuix claims it has not been served or received any contact from the plaintiff or its lawyers about the second class action, with no damages being sought at this time.
Batchelor’s claim however has also been commenced against Macquarie Capital (Australia) Limited and Macquarie Group Limited as co-defendants.
Like in response to Shine Lawyer’s claim, Nuix said it rejected the claims made in Phi Finney McDonald’s lawsuit and plans to defend the claim if it is served.
In addition to the two class actions, Nuix also cut consultancy ties with co-founder Anthony Castagna following investigations by the Australian Federal Police over possible breaches of the Corporations Act.
In August, Nuix reported its profits for 2021 sunk by 107 per cent, ending the financial year with a $1.6 million loss.