RFN Class Action, page-50

Looking back at my files, I received an email (mass email to their distribution list) from Foster Stockbroking on 4 September commenting that “RFN has been able to secure many tier 1 clients” and  that “growth across the client portfolio at a rate of 10% week on week is highly encouraging.”

In their initiation research report dated 25 September, Foster stated that RFN had secured “80 paying clients to date”, and that this was growing at a rate of “15-20 new clients per month (and growing)”.

From the date of that research report until recently, RFN has, by my count, (in various ASX announcements) announced the signing of an additional 28 new clients.

Either the initial statements about customer numbers made by Foster were completely wrong, or the company has been suffering high client attrition and has completed neglected to disclose this to the market.  Either way, this reflects very badly on everyone involved.