Ann: 1H24 Results Update, page-95

Just a case from Aug 2020 (exposing ASIC's 'Why not litigate' attitude):

The Situation:
Australia's corporate regulator, the Australian Securities and Investments Commission ("ASIC") brought proceedings against two former directors of Tennis Australia ("TA") alleging that they engaged in numerous contraventions of their duties under the Corporations Act 2001 (Cth) in respect of their conduct during negotiations between TA and Seven Network Holdings (Seven) for a renewal of an agreement for the domestic broadcast rights to tennis tournaments.

The Judgment:
In ASIC v Mitchell (No 2) [2020] FCA 1098, Justice Jonathan Beach of the Federal Court of Australia rejected 41 of ASIC's 44 allegations against the directors. Justice Beach was extremely critical of the way that ASIC had brought its case finding that the regulator's case theory displayed confirmatory bias and dismissing its construction of the evidence as based on unsubstantiated "conspiracy theories".

Looking Forward:
The Federal Court has delivered ASIC a significant lesson in the risks of the "why not litigate?" approach, with a case which, when viewed through the lens of commercial reality, should not have been brought, instead resulting in many years of litigation and millions of dollars in costs.