Nuix shareholders file class action lawsuit

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Nuix shareholders file class action lawsuit

Vendor disputes allegations and says it will fight the suit.

Nuix shareholders have filed a class action against the software maker alleging that "misleading" financial guidance and disclosures had cost them hundreds of millions of dollars.

The class action was filed in the Supreme Court of Victoria by Shine Lawyers on  shareholders' behalf, and alleges that Nuix gave investors "inadequate guidance on revenue, misleading sales forecasts, and breached the company’s continuous disclosure obligations," Shine said in a statement.

Nuix said in an ASX statement it “disputes the allegations and will be defending the claim”, adding that “the claim does not identify the amount of any damages sought.”

Shine Lawyers' class actions practice leader Craig Allsopp said the firm found the “company’s prospectus and financial forecasts may have misrepresented or omitted financial information and potential risks, which was misleading and deceptive to investors.”

The firm said Nuix’s share price had fallen a number of times on downgraded earnings forecasts, which had cost shareholders dearly.

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

Before Nuix floated in 2020, Macquarie Group held 76 percent of the software maker. It retained a 30 percent stake after the sale, and has been forced to defend its role as well as its IPO processes to angry Nuix shareholders.

Allsopp told iTnews Macquarie Group is not presently named as a defendant in the class action.

Separately, the Australian Securities and Investments Commission is investigating whether Nuix overstated its financial forecasts prior to its listing on the ASX.

Soon after the ASIC announcement, Nuix’s chief executive officer Rod Vawdrey and chief financial officer Stephen Doyle resigned from their respective positions.  

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