REUTERS: Nuix Ltd, an Australian software company, said on Wednesday that it was being probed by a regulator over allegations that its financial statements for the three years ending in June 2020 and the prospectus it prepared prior to its initial public offering (IPO) violated corporate law. The Australian Securities and Investments Commission is also looking into the company’s former Chief Financial Officer Stephen Doyle and two of his family members, according to the company (ASIC).
“We are sincerely worried by the claims surrounding Mr Doyle,” business Chairman Jeffrey Bleich said in a statement, without elaborating.
Nuix is unaware of the scope of the investigation and has received no formal communication from ASIC, according to the business, which added that it will comply with any investigation.
“On June 23, 2021, ASIC sought ex parte travel restraints to ensure that Mr Ross Doyle remains within the jurisdiction to assist ASIC’s inquiry,” the regulator said, referring to the former CFO’s brother.
“The Federal Court yesterday prolonged these orders until October 25, 2021. We will refrain from making any additional comments while ASIC’s investigations are ongoing “Added the regulator.
Messages submitted to Stephen Doyle on LinkedIn were not immediately responded to.
The investigation follows news earlier this month that two of Nuix’s senior executives will depart the firm, including Doyle, whose contract with Nuix was mutually ended. https://www.reuters.com/technology/top-bosses-australias-nuix-exit-amid-share-price-plunge-outlook-cuts-2021-06-15 Rod Vawdrey, the company’s CEO, is slated to step down. Following earnings downgrades and criticism of Nuix’s financial reports by the media and proxy advisory firms, the company’s stock has dropped more than 70% since its IPO late last year. (In Bengaluru, Nikhil Kurian Nainan reported; Himani Sarkar edited)
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