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

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

Dose of caffeine for Retail Food Group shares on profit outlook

Dose of caffeine for Retail Food Group shares on profit outlook

Shares in Retail Food Group (ASX: RFG) perked up today as the Gold ...

Insurance cost for floods and storms hits $12.3 billion since January 2020

Insurance cost for floods and storms hits $12.3 billion since January 2020

With the February-March floods in Southeast QLD and NSW now classed...

CEFC slates $70m for Melbourne timber high-rise T3 Collingwood

CEFC slates $70m for Melbourne timber high-rise T3 Collingwood

A development led by global real estate group Hines that is set to ...

Pharma company Alkaloids of Australia fined $2m for decade-old cartel behaviour

Pharma company Alkaloids of Australia fined $2m for decade-old cartel behaviour

The Federal Court has handed a $2 million fine to Queensland pharma...