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Nuix Shareholder Class Action Investigation

Shine Lawyers is investigating a class action on behalf of shareholders who suffered losses after acquiring Nuix Limited (NXL) shares.

If you acquired NXL shares as part of the initial public offering, or on the market between 4 December 2020 and 30 May 2021, you may be eligible to join this class action.

What is the Nuix Shareholder Class Action Investigation about?

Shine’s Class Actions team is investigating shareholder claims against NXL, including for potential misleading and deceptive conduct by the company.

Since listing on the ASX in December 2020, NXL’s share price has fallen heavily. The decline follows a February 2021 announcement that NXL had only achieved around 44% of its FY21 revenue forecast, and subsequent announcements in April and May downgrading NXL’s revenue forecast for FY21.

A potential class action would seek compensation on behalf of NXL shareholders who suffered financial loss due to NXL’s alleged:

  • Misleading and deceptive conduct
  • Insufficient disclosure in the prospectus
  • Breach of continuous disclosure obligations regarding NXL’s financial forecasts.

Why choose Shine Lawyers’ Class Action Team

Our Class Actions Team possess the skills, industry insight and dedication to deliver exceptional results for everyday Australians. We have fought for successful outcomes for group members in class actions against high profile corporate and government entities, including Johnson & Johnson and DePuy International, as well as the Department of Defence.

Craig Allsopp, who leads this class action investigation, has extensive experience as a solicitor and specialised expertise in shareholder class actions. Craig leads a team of highly skilled lawyers with a proven record in complex, multi-party litigation.

To learn more about our work in this area of law, visit the Class Actions webpage.

Can I join the Nuix Shareholder Class Action Investigation?

To be part of this class action, you must have:

  • Purchased shares in Nuix Limited (ASX:NXL) as part of the initial public offering, or on the market during the period 4 December 2020 to 30 May 2021.

If you meet this criteria, you may be entitled to compensation, and you are encouraged to express your interest in the potential class action.

How to express your interest in the Nuix Shareholder Class Action Investigation

To express your interest on a confidential, no-cost, no-obligation basis, please click the button below and fill out the form.

If you have any questions or require any assistance in expressing your interest in the class action, please contact our Nuix Shareholder Class Action Investigation team at [email protected] or on 1800 325 172.

Background to the Nuix Shareholder Class Action Investigation

The Class Actions Team commenced its investigation into a potential action against NXL following reports of alleged misconduct in connection with the software company’s initial public offering and downgrades to its financial forecasts during the months following.

  • NXL listed on the ASX at $5.31.

  • The company reported its first financials announcement since listing on the ASX, outlining its half year results for FY21. NXL reported that it had only achieved 44% of the yearly revenue forecast for FY21, achieving $85.3 million. In the same announcement, the company affirmed its prospectus guidance of $193.5 million in revenue for FY21.

  • NXL downgraded its revenue forecast from prospectus guidance for FY21.

  • NXL further revised its revenue forecast for FY21. In the wake of these announcements, NXL’s share price has fallen heavily.

  • It was reported that ASIC is investigating whether NXL overstated its financial forecasts ahead of its listing on the ASX.

  • NXL announced that the employment of its Chief Financial Officer had been terminated and that there will be a transition period to replace NXL’s CEO, who has decided to retire.

Shine Lawyers intend to file this class action, pending the outcome of our investigation into alleged:

  • Misleading and deceptive conduct
  • Insufficient disclosure in the prospectus
  • Breach of continuous disclosure obligations regarding NXL’s financial forecasts.

Who is Shine Lawyers’ Class Action team?

Shine Lawyers’ Class Action team includes some of the firm’s most experienced solicitors and support staff. The team includes:

Common Questions

There are three criteria that need to be fulfilled for a class action to take place:

  • There must be seven or more people claiming;
  • The claims must arise out of the same, similar, or related circumstances; and
  • The claim must relate to at least one common issue of law or fact.

Class actions in Australia work on an opt-out model. This means that all potential claimants become group members of the action whether they intend to participate or not. These group members are bound by the judgment of the court or settlement unless they opt-out. The group members in a class action are usually notified about the class action by order of the Court.

Due to the size of each individual claim, the costs of running this action as an individual would quickly exceed the potential damages recoverable. As each group member’s claim involves many common questions of fact and law, running this action as a class reduces the average cost of litigation to a client by only addressing the common issues once at trial, instead of multiple times.

Due to the nature of class actions, the first stage of the proceedings can take between twelve months to three years or more from its commencement.

Unless a settlement is reached, the first stage will only resolve the representative’s claims and the common issues of the proceedings, with group member claims to be resolved individually at a second stage of the proceedings.

It costs you nothing to join the class action. Group members will have no liability for legal costs if the class action is unsuccessful.