Australia's largest stock trading and investment forum Australia's #1 stock forum

NET netlinkz limited

0.00%

0.3¢

Class Action / ASIC delegation, page-52

First 52 Last

Share
Profile

Follow
James1964

510 Posts.

54

25/03/25

21:04

Post #: 78412666
Share

Originally posted by Mr2jzgte: ↑

So the main issue, and I am not a lawyer.

Is money.

A class action costs a lot of money, we already know that NET is broke, they won’t even be able to pay the recent jud.ement against them

So the only recovery option would be against the director insurance, directors personal assets if certain conditions can be proven (rarely happens), and in even more rare occasions recovery orders against third parties such as auditors (Which might explain why the previous auditor resigned and refused to sign off on anything. - my own interpretation and opinion, nothing based in fact)

You need generally 7+ people, a head plaintiff, it’ll cost $40k at minimum to even file the case, the standing (which is easy - financial loss) but you also need to prove a substantial common issue of law or fact, I.e. Misleading financial disclosures, fraudulent accounting, insider trading, misuse of funds, or other breaches of the Corporations Act.

Which you’d think is relatively easy, but it’s not. There’s another few hundred k in legal expenses for the discovery aspect of that.

I doubt any current shareholder is going to front up the money.

A no win no fee firm is unlikely to take the risk on this given the lack of assets, and their bank statements.

Which would leave VC litigation funding, who would want 40+% of the outcome after costs. In my opinion you’d be hard pressed to find a funder for this, there’s no IP that’s worth anything, they don’t own anything physical, maybe they could take ownership of SSI, the only part of the company that ever seemed to make money, and even that seemed to be just breaking even on its own running costs, making it effectively worthless as a recovery source? But given the value of that business, it wouldn’t even cover the final legal costs, let alone offset against the risk factor of getting a $0 outcome.

ASIC is a toothless dog, NET has been reported over and over, ASIC has been ineffective in cases like this, particularly with lifestyle-listed companies.

All in all, they’re probably going to get away with it, when they can’t recapitalise, then hopefully one of the secured lenders will force them in bankruptcy and finally end this farce by the assignment of an administrator; But shareholders are unlikely to see anything out of this

All of this is just my uneducated opinion and musings, and not in anyway legal advice.

I do have a longer version of this utilising OpenAI deep research which checked and cited my assumptions if anyone is interested.

Expand

Your analysis is totally and I regret to say painfully correct.
As far as any Director or senior employee of NET is concerned, why would you invest with or do any business with these people?
NET should be a university textbook example of how ineffective ASIC is, how pathetically run a company can be and the risks associated with investing in an IT company where the CEO has no IT qualifications.
Hopefully, we have kept other people from investing in NET.
Poggio/atcatc/brett64/ et al no longer comment on hotcopper. I guess they have moved on to some other less than honorable occupation. At least the shares owned by the uprampers are now worth exactly $0.

NET Price at posting: 0.3¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

Zip's stunning comeback: Is this the start of a $14 revival?

HotCopper Highlights, Week 24: Israel boosts Energy; Meeka eyes production & Mag7 back

Week 24 Wrap: WW3 looms (again); US econ data tepid & silver surfing

AVM

'Sure to be busy': Advance's Yuquivo drilling gets off to top start with first-hole hits

First 52 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.