The Nuix Ltd (ASX: NXL) share price is trudging lower in afternoon trade on Thursday.
At the time of writing, Nuix shares are swapping hands at 59.75 cents a piece after drifting more than 2% lower.
In broad sector moves, the S&P/ASX All Technology index (ASX: XTX) has stretched up nearly 2% after a gain early in the session.
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What's up with the Nuix share price?
The share caught the attention of sellers today following a company announcement.
Nuix advised that the Australian Securities and Investment Commission (ASIC) has commenced civil proceedings in the Federal Court of Australia against the company and its directors.
This was for a period from 18 January 2021 to 21 April 2021, the release says, and stems from Nuix's disclosure of certain figures in its annual numbers.
Specifically, ASIC is concerned with allegedly deficient reporting of the company's "Annualised Contract Vale (ACV)" figure in its annual report.
The release mentioned:
ASIC alleges that aspects of the company's market disclosure in that period contravened provisions of the Corporations Act and ASIC Act and that the relevant directors breached their duties in respect of that disclosure.
ASIC isn't taking any decisions lightly, either.
It is seeking a 'please explain' from Nuix, penalties against the company, and disqualification orders against the directors involved.
To push back, Nuix has denied all allegations made against it and its directors, noting it intends to defend against all of the proceedings.
It was not able to provide commentary due to the ongoing nature of the case.
Meanwhile, the Nuix share price is down more than 75% in the past 12 months and is down 73% this year to date.
