The Nuix Ltd (ASX: NXL) share price is surging higher today. Its gains follow news that the Australian Securities and Investment Commission (ASIC) has finished part of its investigation into the company's financial history after finding nothing to follow up on.
At the time of writing, the Nuix share price is $1.66, 9.93% higher than its previous close.
Though, that's down from its early morning high of $1.65 – an 11.5% gain.
Let's take a closer look at the news boosting Nuix's stock higher.
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Nuix share price launches on news of ASIC investigation
ASIC has finished flipping through Nuix's financial statements for the 3 years prior to its landmark Initial Public Offering (IPO), concluding it will take no further action.
The news boosted the embattled Nuix share price after the company released a statement to the ASX this morning.
However, while the watchdog has put the software company's financial statements for the periods ending 30 June 2018, 30 June 2019, 30 June 2020, and in relation to Nuix's IPO prospectus to rest, its investigation hasn't ended.
Nuix said it is continuing to cooperate with ASIC's investigation into the company's market disclosures since its much-anticipated float in December 2020.
A long road for Nuix
News of ASIC's investigation first hit the market in mid-2021.
Then, the watchdog was also holding a microscope up to the company's former chief financial officer and their family members on accusations of insider trading.
It followed immense drama that ultimately escalated to an Australian Federal Police probe into the software company's co-founder. The AFP probe was reportedly looking at a $3,000 options package issued in 2005 which was cashed in for $80 million in 2020.
Additionally, as The Motley Fool Australia reported in September, the company has been the subject of 2 class actions. They claim its prospectus may have contained inflated figures and misleading forecasts.
After listing in December 2020, Nuix downgraded its financial year 2021 guidance in April 2021 and again in May 2021.
Macquarie Group Ltd (ASX: MQG) – a major Nuix shareholder and joint manager of its IPO – is said to have conducted a review into the company's listing last year. Like ASIC's investigation so far, it also found no shadows in the company's books.
Nuix share price snapshot
The ongoing drama has taken a major toll on the Nuix share price.
It has fallen 82% over the last 12 months. It's also currently trading for 68% less than its IPO offer price of $5.31 per share.
