Nuix (ASX:NXL) share price climbs despite second class action

What's happening to Nuix today?

The Nuix Ltd (ASX: NXL) share price is edging higher this afternoon despite today's announcement of a second class action claim against the company.

At the time of writing, the investigative analytics and intelligence software provider's shares are trading 0.59% higher at $2.56. In contrast, the All Ordinaries Index (ASX: XAO) is currently down 0.17% at 7,587 points.

Several fingers point at stressed looking man in the middle.

Image source: Getty Images

What's happening with Nuix?

In its release today, the Nuix board advised it had become aware of another class action by a number of disgruntled shareholders.

While the company has yet to be served, it understands that the claim has been filed in the Supreme Court of Victoria.

Nuix stated the company had not been contacted by the plaintiff or lawyers involved. However, it advised that specialist litigation law firm, Phi Finney McDonald, was launching a suit on behalf of Daniel Joseph Batchelor and shareholders who bought Nuix shares during its initial public offering (IPO) between 4 December 2020 and 29 June 2021.

The plaintiff alleges that misleading information had been provided in its prospectus based on FY21 revenue forecasts. As such, the accuser believes Nuix did not act honestly and breached its disclosure obligations under the Corporations Act and the Australian Securities and Investments Commission Act.

This is not the only case Nuix has to answer, with Shine Lawyers taking its case to the court. The legal firm also is seeking to hold Nuix accountable, however, the claim did not identify the size of damages sought.

Nuix said that it disputed both claims and would vigorously defend its position.

About the Nuix share price

The Nuix share price has fallen almost 70% in value over the past 12 months. The sharpest decline came towards the end of February 2021 when it lost 44% in a matter of days, and its shares have continued to slide ever since.

Based on today's price, Nuix has a market capitalisation of around $807.57 million and has approximately 317.41 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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