iSignthis adds $200m to damages claim against ASX

iSignthis has racheted up its dispute with the market operator, claiming total damages more than $460m.

Chief executive John Karantzis said the case was “a high stakes and material case for the ASX” saying “the impact goes beyond monetary damages and challenges ASX’s conduct and suitability to operate a market”.

iSignthis has ratcheted up its dispute with the market operator, near doubling its claim against the ASX for damages related to its almost 12-month suspension from the market.

The group, which has been trading blows with the ASX since October, said on Tuesday it had increased its claim for damages by $200m to $464.7m, from an initial claim of $264m just two weeks ago, noting “further and better particulars”.

While the first claim related to allegations of misleading or deceptive conduct, the latest move relates to the ASX’s decision to suspend, and to keep suspended, trading in its shares.

“ISX contends that in deciding to suspend, and continue to keep suspended, trading in ISX’s shares, ASX has failed to act in good faith and/or honestly and fairly and/or reasonably in exercising its powers under the Listing Rules,” the company said.

iSignthis is also calling for the bourse to reinstate its securities to quotation, along with the removal of its statement on the reasons it found that ISX had breached this listing rules, and a corrective statement in its place.

In its unaudited interim results released last week, iSignthis reported $828,000 profit and said $1m in legal costs related to the ASX suspension had been incurred in the six months to June. Chief executive John Karantzis said the case was “a high stakes and material case for the ASX” saying “the impact goes beyond monetary damages and challenges ASX’s conduct and suitability to operate a market”.

“The ASX has to substantiate its reasons for the suspension of iSignthis Ltd, based upon the facts as they were known to it on the 2nd October 2019. To date, we still have seen no evidence of any investigation into “price volatility” by the ASX, nor how price volatility could have been the reason for suspension.”

The ASX noted the latest increase in damages, but said it still considered the matter to be non-material, an assessment which “reflects ASX’s view of the merits of this claim”.

Securities regulator ASIC is also investigating the firm in relation to suspected contraventions of the Corporations Act.

ISX last traded on October 1 at $1.07 a share.