Nuix facing shareholder class action over allegedly misleading prospectus

Nuix facing shareholder class action over allegedly misleading prospectus

Shine Lawyers has today launched a class action against data analytics and intelligence software firm Nuix (ASX: NXL), with shareholders alleging the company breached disclosure obligations and provided investors with an inadequate guidance on revenue and misleading sales forecasts.

The firm’s class actions practice leader Craig Allsopp said shareholders allegedly lost millions of dollars due to an inflated forecast that saw the company’s share price hit record highs before crashing earlier this year.

NXL’s share price has dropped repeatedly over a short period of time, from a listing price of $5.31 to a high of over $11 in January 2021 and then under $3 following the series of earnings downgrades up to 31 May 2021.

Allsopp said Shine’s investigation revealed that the “company’s prospectus and financial forecasts may have misrepresented or omitted financial information and potential risks, which was misleading and deceptive to investors”.

“This inflated forecast has ultimately cost shareholders hundreds of millions of dollars," Allsopp said.

“Our class action aims to recover these losses for the thousands of investors impacted by Nuix Limited’s alleged misconduct.”

In response, Nuix said it disputed the allegations and will be defending the claim.

Investors who purchased NXL shares from the IPO, or on the ASX between 18 November 2020 and 30 May 2021, are able to register for Shine’s class action.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

"Ugly" lemon and lime juice cube startup Naked Rivals squeezes $3m from angel investor

"Ugly" lemon and lime juice cube startup Naked Rivals squeezes $3m from angel investor

A husband-and-wife founder team, whose lemon and lime juice cubes s...

Riverside backs Wollongong IT powerhouse VITG as M&A opportunities beckon

Riverside backs Wollongong IT powerhouse VITG as M&A opportunities beckon

Virtual IT Group (VITG), a Wollongong-based managed service provide...

Booktopia extends share trading suspension as critical funding announcement looms

Booktopia extends share trading suspension as critical funding announcement looms

Just as so many Booktopia (ASX: BKG) customers had to wait longer t...

Troubled retailer City Chic sells US brand Avenue for $18 million, launches capital raise

Troubled retailer City Chic sells US brand Avenue for $18 million, launches capital raise

As it prepares to launch a $23 million capital raise, str...