Gadens makes second appearance in Magnis whistleblower mess after agreeing to represent regulator

ASIC had already contracted the law firm to act for it after accidentally releasing a breach report involving Magnis Energy Technologies. The firm has now agreed to act for a key figure in the report, Matthew Boysen.

Matthew Boysen pictured at the Magnis AGM.

Law firm Gadens, which is acting for the corporate regulator in a case where it accidentally disclosed the details of a whistleblower, is threatening to sue the same individual on behalf of another client associated with his complaint.

Gadens wrote to corporate veteran Andrew Price alleging the former company director has engaged in “a campaign of making false, misleading and threatening publications” against ASX-listed uranium explorer Gladiator Resources and its chair Matthew Boysen on social media and stock discussion site HotCopper.

Gadens was instructed to act “in respect of … claims in defamation and injurious falsehood”, according to the cease and desist documents shown to The Australian.

However, Gadens is also acting for the Australian Securities & Investments Commission which published a copy of Mr Price’s unredacted complaint to the regulator.

That complaint detailed allegations against ASX-listed battery and graphite player Magnis Energy Technologies and figures associated with the company, including Mr Boysen.

ASIC is currently suing Magnis and its chair Frank Poullas, who are accused of lying to shareholders, in the Federal Court using law firm Johnson Winter & Slattery.

Magnis chair Frank Poullas, far right. Picture: John Feder

A spokesman for the corporate regulator said the agency had been assured by Gadens that “no conflict of interest exists preventing Gadens from continuing to act for ASIC and for their other client and that appropriate information barriers are in place to ensure confidentiality”.

It is unclear if Gadens sought ASIC’s permission before agreeing to represent Mr Boysen and Gladiator Resources.

Zed Law principal Ryan Zahrai, representing Mr Price, said he was extremely concerned about Gadens acting for both ASIC and Mr Price’s latest legal adversaries.

“We have serious concerns about the apparent conflict of interest arising from Gadens simultaneously representing ASIC — the recipient of our client’s disclosures regarding regulatory breaches — and Mr Boysen, who has a material financial interest in the very company that is the subject of those disclosures,” he said.

“Despite our repeated requests, Gadens has failed to provide any meaningful explanation of how they have assessed and managed this clear conflict, or what information barriers, have been established.”

ASIC chair Joe Longo and commissioner Simone Constant. Picture: Paul Jeffers

Gadens general counsel Aggie Maisano said the firm “has at all times acted in accordance with its ethical and regulatory obligations under the Australian Solicitors’ Conduct Rules”, in correspondence to Mr Zahrai seen by The Australian.

There were “no legal, ethical, or commercial conflict of interest exists” if the firm also acted for Mr Boysen.

Mr Zahrai said Gadens’ “generic references to compliance with professional conduct rules, without substance, are inadequate”.

“This isn’t a minor oversight. It goes to the heart of legal ethics and public trust in the independence of regulatory processes,” he said.

Several lawyers contacted by The Australian said they were curious how Gadens could approve acting for both ASIC and Mr Boysen, and an internal ‘firewall’ between different teams was difficult to manage.

Gadens brand manager Ailsa Pender refused to respond when questioned on how the firm had determined it could act in the matter, or how its lawyers knew to contact Mr Zahrai assuming the relevant firewalls were put in place.

“We do not comment on client matters,” Ms Pender said.

Gladiator Resources chair Matthew Boysen

Mr Boysen has been central to the Magnis story, being one of the largest shareholders in the ASX-listed disaster, which has failed to generate a single dollar of revenue over 16 years.

At its peak Magnis was worth more than $770m, collapsing to circa $40m in November 2023 before its shares were suspended ahead of the company’s annual meeting that year, at which Mr Boysen assaulted this journalist, and was convicted.

Since its suspension from trade Magnis has struggled on, reporting just $23,000 in cash and millions in debts.

Mr Boysen was among several shareholders who provided a $704,000 financial backstop to Magnis, since repaid after the company secured a financial lifeline in the form of a high interest loan.

Gladiator Resources, chaired by Mr Boysen, sits on Tanzanian uranium exploration tenements previously controlled by Magnis or companies associated with its chair, Mr Poullas.

Originally published as Gadens makes second appearance in Magnis whistleblower mess after agreeing to represent regulator