Arafura Rare Earths Ltd, page-1134

"misleading statements"

https://www.news.com.au/finance/markets/australian-markets/asx-ends-on-higher-note-despite-corporate-watchdog-announcing-court-action-over-alleged-misleading-statements/news-story/d6528116b6958db064243858c2f28aa4

But investors were left spinning after the corporate watchdog announced it had commenced proceedings in the Federal Court against the ASX over alleged misleading statements relating to the operator’s Clearing House Electronic Subregister System (CHESS) replacement project.

The Australian Securities & Investments Commission (ASIC) alleges ASX statements back in February 2022 that the project remained “on-track for go-live” by April 2023 were misleading.

“ASIC alleges those representations were misleading and deceptive because, at the time of the announcements, the project was not tracking to plan and ASX did not have any reasonable basis to imply the project was on track to meet future milestones,” the regulator said in a statement on Wednesday.

ASIC chair Joe Longo said the CHESS replacement was a technology project of fundamental significance and involved replacing infrastructure crucial to the operation of the Australian economy.“Its critical importance was all the more reason ASX needed to ensure it told the Australian public the truth about how the project was tracking and whether it would be completed on time,” Mr Longo said.“The delay and subsequent pause of the project in November 2022 caused significant cost to ASX and market participants who relied on assurances as to the progress of the project and scheduled go-live date.”In response Helen Lofthouse, ASX managing director and chief executive, said: “We recognise the significance and serious nature of these proceedings.”She added they co-operated fully with ASIC’s initial investigation were “carefully reviewing and considering” the allegations.“We play a critical role at the centre of Australia’s financial markets, and continue to focus on supporting and delivering for customers,” Ms Lofthouse said in a statement.“We are committed to taking ASX forward, and have made strong progress as an organisation over the past two years.“ASX will keep the market informed in accordance with its continuous disclosure obligations.”