Judge signals approval of $5m penalty for Noumi in ASIC lawsuit
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The news: Federal Court of Australia Judge Ian Jackman has indicated his approval of an agreed on $5 million penalty between plant-based beverage maker Noumi and the corporate regulator.
The context: In a decision expected next month, Jackman has signalled he will order Noumi pay the penalty in three instalments.
The Australian Securities and Investments Commission (ASIC) brought the legal action against Noumi, formerly Freedom Foods, in early 2023 for its alleged failure to disclose material information about the value of inventories in its financial reports for the full year ending 30 June, 2019, and the half year ending 31 December, 2019.
A separate class action led by law firm Phi Finney McDonald is taking place before the Supreme Court of Victoria, backed by litigation funder Omni Bridgeway.
A judgment is expected from Jackman on or before 6 August.
What they said: Speaking in court today, Jackman said: "I think it’s preferable that I don't formally make those orders until I give reasons, which wont be until early August".
Noumi announced to the ASX on 12 July that it had "joined with ASIC in submitting to the [c]ourt that $5 million is an appropriate civil penalty in the proceedings, plus a contribution to ASIC’s costs of $50,000".
"The financial impact of the civil penalty and costs will be provided for in the company’s FY24 financial accounts to be published prior to 31 August 2024," the company announcement said.
The source: Federal Court
