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ISignthis seeks $264m in damages from ASX

ISignthis seeks $264m in damages from ASX

ISignthis, a provider of payment verification technology to help banks meets AML reporting obligations, is seeking A$264 million in damages from the Australian Securities Exchange over the suspension of its shares.

Trading in iSignthis shares was suspended in October, after proxy advisory and research group Ownership Matters raised questions about the company's disclosures and governance.

In May, the fintech failed in a legal bid to prevent the ASX from outlining the reasons for its actions in a Statement of Reasons. It had claimed to the court that its reputation would be damaged by the release of an "inaccurate" statement.

The statement said that ASX had "serious questions" about the legitimacy of 337 million performance shares held by iSignthis directors.

Now, iSignthis has filed an amended statement of claim against the ASX in the Federal Court of Australia alleging "misleading and deceptive" conduct by the exchange operator by publishing a Statement of Reasons that "purported to explain the basis of the suspension".

The firm is claiming damages now in excess of $264 million and says this is likely to increase over time in the "absence of a corrective statement by ASX and an apology".

John Karantzis, CEO, iSignthis, says: "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."

He adds that the issue is a "high stakes and material case for the ASX" although the operator says in its own statement that its assessment is that the "matter is not material and does not require further disclosure to the market".

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