Australia's Nuix slumps another 15% as regulator probes financial statements

FILE PHOTO: The logo of software company Nuix can be seen in their office located in central Sydney, Australia
·2 min read

(Reuters) -Software provider Nuix said on Wednesday some financial statements and a prospectus for its initial public offering were being investigated by an Australian regulator for potentially breaching corporate law, sending its shares down 15%.

Nuix said the Australian Securities and Investments Commission (ASIC) was looking into financial disclosures for the period between end-2018 and 2020, and is investigating its former chief financial officer Stephen Doyle and two of his family members.

"We are genuinely disturbed by the allegations concerning Doyle," Chairman Jeffrey Bleich said in a statement, without providing any details on the allegations.

Doyle did not immediately respond to messages sent on LinkedIn.

Nuix said it was not aware of the precise nature of the probe and had not received any formal notification from ASIC, adding that it would cooperate with any investigation.

The stock, which has plummeted more than 70% since listing late last year and hit successive record lows on earnings downgrades and criticism of its financial accounts, dropped to a fresh all-time low on Wednesday.

The probe comes on the heels of news earlier this month that two of Nuix's top bosses would leave the company https://www.reuters.com/technology/top-bosses-australias-nuix-exit-amid-share-price-plunge-outlook-cuts-2021-06-15, including Doyle whose contract with Nuix was terminated by mutual agreement. CEO Rod Vawdrey is set to retire.

"ASIC obtained ex-parte travel restraints on June 23, 2021 for the purpose of ensuring that Ross Doyle remains within the jurisdiction to assist with ASIC's investigation," the regulator said, referring to the former CFO's brother.

"These orders were extended by the Federal Court yesterday until October 25, 2021. As ASIC's investigations are ongoing, we do not propose to comment further," the regulator added.

(Reporting by Nikhil Kurian Nainan and Shashwat Awasthi in Bengaluru; Editing by Himani Sarkar and Uttaresh.V)

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