Australia’s Nuix slumps another 15% as regulator probes financial statements

Software provider Nuix said on Wednesday some financial statements and a prospectus for its initial public offering were being investigated by an Australian regulator for potentially breaching corporate law, sending its shares down 15%.

Nuix said the Australian Securities and Investments Commission (ASIC) was looking into financial disclosures for the period between end-2018 and 2020, and is investigating its former chief financial officer Stephen Doyle and two of his family members.

Nuix said it was not aware of the precise nature of the probe and had not received any formal notification from ASIC, adding that it would cooperate with any investigation.

The stock, which has plummeted more than 70% since listing late last year and hit successive record lows on earnings downgrades and criticism of its financial accounts, dropped to a fresh all-time low on Wednesday.

The probe comes on the heels of news earlier this month that two of Nuix’s top bosses would leave the company here, including Doyle whose contract with Nuix was terminated by mutual agreement. CEO Rod Vawdrey is set to retire.