Fortescue Metals Group and its chairman, Andrew Forrest, won leave to appeal to the High Court against a finding that they misled investors. The landmark case is expected to clarify Australia’s continuous disclosure laws.
Mr Forrest said the High Court’s decision justified the company’s action to strongly defend the case, launched by the corporate regulator in 2006. Australian Securities & Investments Commission acting chairman Belinda Gibson said ASIC would defend the appeal and that the case raises important issues of misleading and deceptive conduct, continuous disclosure and directors’ duties.
The full Federal Court previously found that Fortescue had breached its obligations under section 674(2) of the Corporations Act by failing to correct statements that it had entered “binding” contracts with Chinese companies in 2004.
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