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ISX loses legal bid to suppress ASX reasons for share suspension

ISX loses legal bid to suppress ASX reasons for share suspension

ISignthis, a provider of payment verification technology to help banks meets AML reporting obligations, has lost the first round its legal battle with the Australian Securities Exchange over the suspension of its shares, after a Federal Court over-ruled its attempt to prevent the ASX from outlining the reasons for its actions.

Trading in iSignthis shares was suspended in September, after proxy advisory and research group Ownership Matters raised questions about the company's disclosures and governance. The quality of the firm's customer base has also been under the microscope, with a quarter of its revenue derived from companies subject to regulatory action, a number of whom are facing criminal sanctions for allegedly running illegal trading scams.

ISX claimed to the court that its reputation would be damaged by the release of an "inaccurate" Statement of reason by the Australian stock market operator.

In coming down in favour of the ASX, the court said that ISX was overreaching in it attempt to fully suppress the document.

In a statement, ISX says it is prepared to comply with all ASX directions in order to have it shares relisted, but continues: "It is important to note that the Company does intend to continue its legal case against the ASX. To be clear, the board of ISX rejects the ASX’s Statement of Reasons, which it considers to be a fundamentally flawed document that forms a number of erroneous conclusions based on factually incorrect information and assumptions."

The company says it may take the matter to appeal at a higher court.

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