iSignthis Increases Damage Claims against ASX, Adds $200.7m

The damage claims relate to ASX suspending trading in ISX’s shares.

iSignthis (ASX:ISX) announced today that it has increased the damage claims against the Australian Securities Exchange (ASX) Limited with the Federal Court of Australia, as well as further set out what the damages relate to.

According to a statement written by ISX today, the payments identity company has added damages of $200.7 million against ASX. This relates to the exchange’s decision to suspend trading in iSignthis’ shares and continue to keep trading suspended.

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The $200.7 million in damages is on top of the $264 million already claimed by ISX. As Finance Magnates reported, in recent weeks iSignthis filed an amended statement of claim with the Federal Court, claiming damages in excess of $264 million.

iSignthis Claims ASX Failed to Act in Good Faith

iSignthis has added the extra damages to its statement of claim because it contends that by suspending and keeping its shares suspended, ASX has failed to act in good faith, either honestly, fairly and reasonably in exercising its powers under the Listing Rules, the company said in its statement.

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Speaking to Finance Magnates, a spokesperson from the ASX said that the exchange has noted the latest increase in the damages claimed by ASX, and referred to its statement on 21st August 2020 regarding the litigation.

“In that update, ASX stated that the matter is not considered material. That reflects our view of the merits of the claim and remains our assessment at this time, notwithstanding the changing amounts being claimed,” the spokesperson said.

John Karantzis iSignthis (ISX)
John Karantzis – CEO of iSignthis

Commenting on the changes, John Karantzis, CEO of ISX, commented in the statement: “By any measure, the increase in damages claimed by ISX and the impact of any adverse finding continues to make this a high stakes and material case for the ASX, as the impact goes beyond monetary damages and challenges ASX’s conduct and suitability to operate a market. 

“The ASX has to substantiate its reasons for the suspension of iSignthis Ltd, based upon the facts as they were known to it on the 2nd October 2019. To date, we still have seen no evidence of any investigation into ‘price volatility’ by the ASX, nor how price volatility could have been the reason for suspension.

“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.”

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