The Australian Securities and Investments Commission has commenced action against logistics software group GetSwift and its directors Bane Hunter and Joel Macdonald, alleging the pair contravened provisions of the Corporations Act.
The regulator is taking action against GetSwift and is seeking to ban Mr Hunter and Mr Macdonald from managing a corporation and force them to pay penalties for a series of misleading announcements made between February and December 2017. It is also alleging that Mr Hunter and Mr Macdonald failed to discharge their duties as directors with the requisite degree of care and diligence.
The Australian Financial Review revealed in January 2018 that then market darling, which had seen its share rise ten-fold the previous year, had twice failed to update the market about losing significant contracts and jumped the gun on revenue forecasts tied to a Commonwealth Bank of Australia partnership.
This came after the high flying and divisive tech play GetSwift launching a capital raising of $75 million, less than a week after the ASX suspended the logistics software group for a lack of detail around an Amazon contract that sent the stock up nearly 84 per cent.
ASIC said its case relates to a series of ASX announcements made by GetSwift between February and December 2017 relating to agreements with clients for the use of the company’s software-as-a-service (or SaaS) platform.
There will be a case management hearing on March 1 at the Federal Court in Melbourne.