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iSignthis hits ASX with $264 million damages claim

Legal Concept 16.9

The ASX Ltd (ASX: ASX) share price is trading lower on Friday after iSignthis Limited (ASX: ISX) announced that it has filed an amended statement of claim against it in the Federal Court of Australia.

At the time of writing the stock exchange operator’s shares are down 2% to $88.09.

This is just a touch short of the record high of $90.84 it reached earlier in the day. 

What did iSignthis announce?

This afternoon the troubled payments technology company announced that it has amended its statement of claim to also allege misleading and deceptive conduct under section 1041H of the Corporations Act by ASX Limited.

This follows the publishing of a ‘Statement of Reasons’ that explained the basis of the suspension of iSignthis’ securities since 2 October 2019.

According to the release, iSignthis is claiming damages now in excess of $264 million. Though, it warned the stock exchange operator that this claim 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.”

The company’s CEO, John Karantzis, commented: “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 mislead [sic] 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,” he added.

At the time of writing ASX Limited had not responded to the claim.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.