Australia's Nuix plunges 19% as ex-CEO carries on legal battle
08/03/2023 04:19
March 8 (Reuters) - Nuix Ltd's shares NXL.AX tumbled
as much as 19% on Wednesday after the Australian software firm's
former top boss appealed a court ruling that dismissed his
claims of damages related to his sale of shares after the
company's public listing in late 2020.
Edward Sheehy, Nuix's co-founder and its chief executive
from June 2006 to January 2017, is contending the Federal Court
of Australia's decision last month that his stock options could
not have been exercised after the company's initial public
offering in December 2020.
Sheehy, who left Nuix in early 2017, has been engaged in a
long, drawn-out legal battle with the company over 453,273
options that entitled him to about 22.7 million shares.
Sheehy had claimed he would have sold the shares if issued
to him around the IPO, and that he lost that chance as Nuix's
stock tanked after their debut on the Australian stock exchange
in late 2020. The court rejected those claims last month.
The company's shares fell 15% or more in five of the six
months after the IPO. Overall, they have crashed by nearly 85%.
Nuix, which is backed by investment firm Macquarie Group Ltd
MQG.AX , said in a statement that Sheehy was not appealing the
judge's finding that the company had engaged in any "oppressive
or unconscionable conduct".
It added that Sheehy was also not contesting the judge's
finding that even if he had claimed entitlement to the shares,
his maximum potential damage claim would be about A$61 million
($41 million) plus interest, rather than his original claim of
A$169 million, plus interest.
Nuix reiterated it continues to reject Sheehy's claims and
will defend the appeal.
Nuix shares were down 15.6% as of 0419 GMT, on course for
their biggest one-day decline in over three weeks. They were the
top loser in the ASX All Ordinaries index .AORD .
($1 = A$1.5216)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Savio
D'Souza)
((Rishav.Chatterjee@thomsonreuters.com;))