ASIC has filed an appeal against a Federal Court decision dismissing its case against intelligence software provider Nuix Limited (Nuix).
ASIC commenced proceedings in September 2022 alleging Nuix breached its continuous disclosure obligations and engaged in misleading or deceptive conduct in connection with statements to the market about its financial performance. ASIC also alleged breaches of directors’ duties by Nuix’s board.
The Court delivered judgment in April 2026, dismissing ASIC’s case.
ASIC is appealing the decision because it is concerned that there were errors in the primary judge’s findings.
ASIC is not appealing the Court’s decision in relation to the directors.
The appeal will be heard by the Full Federal Court on a date to be determined.
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Background
The initial public offering (IPO) of Nuix was billed as the biggest IPO of 2020 and, at the offer price of $5.31 per share, Nuix had a market capitalisation of $1.7 billion.
While ACV is not a statutory reporting metric, Nuix’s forecast ACV growth was a feature promoted in its Prospectus. ASIC considers that for a business like Nuix with revenue recognition patterns that may distort statutory revenue, ACV is a significant metric which influences an investor’s assessment of its underlying growth, earning potential and suitability as an investment.
ACV assesses the total contract value of a company’s revenue at a point in time on an annualised basis. A comparison between ACV at two points in time provides visibility as to a company’s underlying revenue growth trajectory.