The regulators are finally showing some teeth to penalise companies and directors who are not doing the right thing, and should send a strong message to management especially in the microcap community. GSW plummeted 27% on this release below,…this is what I don’t get….why would people continue to buy into ‘tainted’ stocks – especially when there are so many other good stocks out there to buy. GSW was adamant to continue business like its BAU, in the midst of a class action as well.
I held this stock before but got out (mid Feb 18) with an overall marginal profit position because I got out immediately upon release of suspension.
GET SWIFT Service of ASIC Civil Penalty Proceedings GetSwift Limited (the Company) advises that the Australian Securities and Investments Commission (ASIC) has filed and served an originating process commencing civil penalty proceedings in the Federal Court of Australia against the Company and two of its directors, Mr Joel Macdonald and Mr Bane Hunter.
The Company was served with the proceedings following close of trade on Friday, 22 February 2018. The proceedings bought by ASIC allege that the Company failed to meet its continuous disclosure obligations and engaged in misleading or deceptive conduct. Claims in relation to these allegations are also bought against Mr Macdonald and Mr Hunter, in their capacity as directors of the Company. ASIC is seeking pecuniary penalties against the Company and each of Mr Macdonald and Mr Hunter as well as orders disqualifying Mr Macdonald and Mr Hunter from managing corporations for a period. The claims relate to alleged conduct between February and December 2017.
The Company previously advised its shareholders that ASIC had served the Company with a notice to produce documents and that the company would fully comply with that notice and ASIC’s investigations, by ASX Announcement released 28 February 2018. Since that time, the Company has been cooperating fully with ASIC in relation to its investigations. The Company was given no prior notice of ASIC’s decision to commence proceedings.
The Company, Mr Macdonald and Mr Hunter irrefutably deny the allegations
The Company, Mr Macdonald and Mr Hunter irrefutably deny the allegations made by ASIC and, collectively, will vigorously defend the proceedings. Quinn Emanuel Urquhart & Sullivan, LLP is retained to defend the proceedings.
The class action proceedings bought against the Company relating to certain disclosures are continuing before the Federal Court of Australia.
The Company will continue to keep its shareholders informed of developments. At the same time, the Company remains focused on supporting its customers and continuing to build its business.
