30 witnesses for lengthy GetSwift trial

30 witnesses for lengthy GetSwift trial

The corporate watchdog has flagged that it intends to throw 30 witnesses at software company GetSwift in its now delayed trial.

The large number of witnesses, expected to take around six weeks to get through, has compelled Federal Court judge Michael Lee to delay the trial until 2020 to allow GetSwift to prepare for the bout with the Australian Securities and Investments Commission.

The proceedings relate to a series of ASX announcements made by GetSwift between February and December 2017 relating to agreements with clients for the use of the company's software-as-a-service platform.

The watchdog is alleging that the company made representations that were misleading, and that Hunter and Macdonald were either involved in the failure of GetSwift to meets its obligations and failed to discharge their directors' duties.

It's been alleged GetSwift breached its obligations to the market in announcing deals with The Fruitbox Company, the Commonwealth Bank and Fantastic Furniture, with those deals subsequently either cancelled or subject to ongoing review.

ASIC is seeking declarations from the court that the Corporations Act was contravened, penalties, and a ban over Macdonald and Hunter from managing a company for a period of time.

GetSwift says that it irrefutably denies the allegations made by ASIC and will vigorously defend the proceedings.

GetSwift was facing up to three separate class action law suits over allegations it has engaged in misleading and deceptive conduct relating to continuous disclosure breaches to the market, however only the class action from Phi Finney McDonald was given the green light to go ahead.

The company confirmed in February 2018 it received notice from ASIC that it was "under investigation" as the company revealed a blowout in losses of nearly 1,000 per cent.

In its half yearly update released to the market shortly after the ASIC investigation was announced, the company revealed its net loss after tax had blown out by 964 per cent to $5.5 million from $516,000 in the prior corresponding period.

Ahead of the ASIC investigation and the class action being lodged, GetSwift spent nearly a month in a trading halt as it worked through its disclosure issues with the ASX.

Shares in GetSwift are down 6.25 per cent to $0.30 per share at 10.38am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

Victoria hit with magnitude-5.8 earthquake, felt as far as Sydney and Adelaide

Victoria hit with magnitude-5.8 earthquake, felt as far as Sydney and Adelaide

A magnitude-5.8 earthquake originating in Mansfield, Victoria ...

Airwallex now valued at $5.5 billion following oversubscribed Series E

Airwallex now valued at $5.5 billion following oversubscribed Series E

Fintech platform Airwallex today announced it has raised US$200 mil...

APA throws hat in the ring with bid for AusNet, beats Brookfield's proposal by $382m

APA throws hat in the ring with bid for AusNet, beats Brookfield's proposal by $382m

The race to take control of Melbourne-based AusNet Services (ASX: A...

$15m raised in Series A for Flippa, the world's leading digital marketplace for selling businesses

$15m raised in Series A for Flippa, the world's leading digital marketplace for selling businesses

As an online marketplace for buying and selling business with more ...