iSignthis Seeks Initial Damages of $27 Million From ASX

iSignthis (ISX), a payments identity company, has published a filing with the Australian Securities Exchange (ASX) this Tuesday, seeking initial damages in excess of $27 million from the ASX, as part of its ongoing legal battle with the Australian exchange.

In particular, ISX has made an application with the Federal Court to extend its Statement of Claim against the ASX to address the ASX’s Statement of Reasons, introduce a damage claim for what the ISX alleges is the “misleading and deceptive conduct by the ASX under the s1041H of the Corporations Act” and seek initial damages flow from this specific issue in excess of $27 million.

Speaking to Finance Magnates John Karantzis, Managing Director, iSignthis Ltd said: “As we have said from the outset, we have taken this legal action in the interests of our shareholders, who are the ones who have been impacted by this ambiguous and lengthy suspension process. The company is focused on getting the best outcome for those shareholders.”

Finance Magnates understand that the figure of $27 million refers to the damage caused by the ASX to its actual business to date. According to Karantzis, this figure is expected to grow as the company identifies further financial damage to the business.

In a Letter to Shareholders, seen by Finance Magnates, Karantzis said: “... while the currently articulated damages claim is for $27 million, we believe that further substantial damages relating to the broader claim will be quantified in coming weeks.”

ASX declined to comment on the announcement from iSignthis.

Background on iSignthis vs ASX

As Finance Magnates reported, iSignthis has been suspended from trading indefinitely since October last year, as the ASX and the Australian Securities and Investments Commission (ASIC) complete their inquiries as to the nature of its revenue and contracted service fee revenue, following Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in its share price.

Following this, the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term company has engaged in a legal battle with the ASX, as iSignthis alleges that in suspending the company from trading, the market operator had breached its own rules and the Corporations Act.

In April, the Federal Court of Australia allowed the ASX to publish its Statement of Reasons as to why it suspended the trading of ISX shares.

iSignthis wanted the Statement of Reasons to remain sealed and unavailable to the public, arguing that the company would suffer reputational damage if the ASX was able to publish its reasoning behind its trading suspension.