- Fintech start-up iSignthis (ISX) is now seeking $200 million more in damages as the ongoing legal battle between the fintech start-up and the ASX intensifies
- ISignthis is now pursuing just over $464 million in damages relating to the ASX’s decision to suspend ISX shares in October of last year
- Recently, the ASX published its Statement of Reasons for suspending the shares, which ISignthis claims is inaccurate and damaging to its reputation
- ISignthis is also claiming that the ASX has been unable to validate its reasons for the suspension and, therefore, has failed to act in good faith in exercising its powers under the listing rules
- Despite the damages escalating, the ASX has yet to release a updated comment to the market
- ISignthis last traded in October 2019 for $1.07 per share
Fintech start-up iSignthis (ISX) is now seeking $200 million more in damages as its ongoing legal battle with the ASX continues to intensify.
In total, iSignthis is now pursuing just over $464 million in damages relating to the ASX’s decision to suspend ISX shares in October of last year.
The case, which has been filed through the Federal Court, regards ASX’s publication of a Statement of Reasons for initially suspending the shares, which to-date remain unable to trade.
Through the statement, the ASX revealed it had “serious questions” regarding certain performance shares held by iSignthis directors, which were first brought to light following media speculation surrounding a bout of ISX price volatility.
This sparked a lengthy back-and-forth between the two parties, which ultimately led to the share suspension and ISignthis filing the case in December of last year.
Meanwhile, iSignthis claims the ASX has, thus far, been unable to validate its reasons for suspending the shares and has failed to act in good faith in exercising its powers under the listing rules.
iSignthis is also demanding compensation for damage to its reputation, resulting from the publication of the statement and the ongoing share suspension.
CEO of ISX, John Karantzis, said the increased damages and the impact of any adverse finding continues to make this a high stakes and material case for the ASX.
He went on to say that the impact of the case goes beyond monetary damages and challenges ASX’s conduct and suitability to operate a market.
Despite the damages escalating, the ASX has yet to release an updated comment to the market.
The market operator first acknowledged the lawsuit late last month in a public update but did not to consider the information price sensitive.
After considering the nature of the claims, John appears confounded by the ASX’s relative silence on the legal action.
“It would seem inconceivable under the ASX’s own listing rules that the board of the ASX would consider this action as ‘not material’, especially given both the quantum and the impact any contravention of s1041H of the Corporations Act would have on the ASX’s Australian market operators license,” he said.
It remains to be seen how the ASX will respond and whether or not it will now consider the legal action adequately material to prompt further comment.
iSignthis last traded in October 2019 for $1.07 per share.