Nuix share rout as explosive allegations of ASIC investigation aired
Investors have savaged troubled tech play Nuix after explosive allegations that the company’s former chief financial officer was being investigated.
Investors have savaged troubled tech play Nuix, with the shares taking a double-digit rout after explosive allegations emerged late Tuesday the company’s former chief financial officer was being investigated amid insider trading allegations.
Shares in the company closed down 13 per cent, falling to $2.16 before closing at record low of $2.21.
The share hit came after allegations of insider trading concerning Nuix’s former CFO Stephen Doyle after the corporate regulator made a bid to stop his brother Ross Doyle leaving the country.
The affidavit, reported in The Australian, detailed a string of allegations against the two brothers and their father Ronald Doyle, and also revealed the Australian Securities and Investments Commission was pursuing another investigation into Nuix regarding its listing.
In her affidavit ASIC senior lawyer Jenny Truong said the regulator was also investigating “whether Stephen Doyle gave to the ASX or permitted to be given to the ASX, a prospectus including information about the forecast revenue of Nuix for the financial year ending 30 June 2021 that was false or misleading”.
Nuix has already been hammered by investors in three major sell-offs after delivering several earnings warnings since its December listing.
Nuix chair Jeffrey Bleich on Wednesday acknowledged the ASIC investigation against Stephen, Ross and Ronald Doyle.
“We are genuinely disturbed by the allegations concerning Mr Doyle and will fully assist ASIC in getting to the bottom of that matter,” Mr Bleich said.
The business said it had come to understand ASIC had also launched a separate investigation “into the affairs of Nuix” in relation to the statement of finances in 2018, 2019, and 2020 and the listing prospectus.
“Nuix is not aware of the precise nature of the investigation beyond the information outlined above and has not received any formal notification from ASIC in relation to any such investigation,” the company said.
The comments come as questions were raised about the sign-off from the board on share splits that saw Stephen Doyle’s shareholding allegedly misstated in official documents.
“In August 2018 Nuix Shareholder Macquarie Group produced an internal document indicating that Stephen Doyle continued to own the 50,0000 Nuix shares that were split into 2m shares,” ASIC alleges.
Macquarie Group technology investment banker Dan Phillips served as chair of Nuix from 2018 to 2020, during the period ASIC is investigating. Mr Phillips was also chair during the period in which the share split was authorised.
While he stepped down as chairman of Nuix in November 2020, Mr Phillips continues to occupy a seat as a non-executive director on the board of Nuix.
There is no suggestion Mr Phillips is under investigation by ASIC. A Macquarie spokeswoman declined to respond to questions. Prior to listing Macquarie owned almost 66 per cent of Nuix.
The investigation for Nuix’s former CFO come after ASIC and Australian Federal Police officers raided Nuix’s offices and two addresses linked to the Doyle brothers on Thursday last week.
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