iSignthis (ASX:ISX) announced today that it has filed its amended statement of claim against the Australian Securities Exchange Limited (ASX) in the Federal Court of Australia, with the payments identity company now claiming damages in excess of $264 million.
According to a document filed through the ASX, the amended statement of claim from ISX now alleges that the exchange engaged in “misleading and deceptive conduct under section 1041H of the Corporations Act.” iSignthis claims that ASX did so by publishing its ‘Statement of Reasons’.
As Finance Magnates reported, ASX published its Statement of Reasons as to why it suspended trading in ISX shares back in October of last year following court proceedings, which sided in favour of the exchange to publish the document.
Among a list of reasons, the exchange operator pointed to media speculation, volatility in ISX’s share price, the fact that the company was providing services to cryptocurrency exchanges and concerns from the country’s regulator the Australian Securities and Investments Commission (ASIC).
ISX tried to stop the exchange from publishing the statement, claiming it would result in damage to the company’s reputation. On the other hand, ASX said that not releasing the Statement of Reasons could damage its reputation.
Initially, iSignthis was seeking $27 million in damages from the Australian exchange. However, the company did say at the time this was likely to increase. In its statement today, ISX reiterated that sentiment.
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“This amount is likely to increase with the passage of time between now and a resolution of the claim, and in the absence of a corrective statement by ASX and an apology,” ISX said in a Letter to Shareholders and a statement filed through the ASX.
iSignthis: ASX needs to Prove Statement of Reasons
Commenting on the amended claim, John Karantzis, the CEO of ISX, said in its statement: “The ASX now needs to demonstrate to the Federal Court that its ‘Statement of Reasons’ is supported by evidence, and not the mere conjecture that we claim it is.
“Uniquely, ASX as a market operator may have misled and deceived the market that it is obligated to maintain on a fair, transparent and orderly basis, throwing doubt on its ability to manage a Tier 1 market.
“By any measure, the damages claimed and the impact of any adverse finding make this a high stakes and material case for the ASX.”
In response to the amended claim, ASX has issued a statement of its own, outlining the steps it would need to take if the court rules in iSignthis’ favour. Namely, it would need to reinstate trading of ISX shares, remove its Statement of Reasons and pay the damages as outlined by the company.
“ASX takes its obligation to monitor and enforce compliance with the Listing Rules very seriously, and is defending these legal proceedings,” the exchange said in its statement today.