ASIC fails to chop down Forrest

The High Court has handed down its decision in the proceedings brought by the Australian Securities and Investments Commission (ASIC) against Fortescue Metals Group (FMG) and Andrew Forrest. The decision turned on whether the description of a set of agreements as ‘binding contracts’ in market announcements by FMG was misleading and deceptive. In a unanimous outcome, the High Court overturned the Full Federal Court’s decision and found that the announcements were not misleading or deceptive and consequently there was no breach of the continuous disclosure obligation by FMG and no breach of duty by Mr Forrest.

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