News of Office Raid Triggers Selloff in Nuix

By Glenn Dyer | More Articles by Glenn Dyer

Shares in troubled Sydney based tech stock Nuix slid nearly 2% yesterday on the news that Australian Federal Police had raided the company’s offices as part of a criminal investigation.

As well, AFP officers also raided an apartment in Pyrmont on Thursday following the launch of a criminal investigation by the corporate regulator, ASIC.

In a statement to the ASX on Thursday, Nuix said: “A search warrant was today executed at Nuix’s Sydney office seeking documents in relation to an investigation into the affairs of an individual. Nuix understands that the warrant does not relate to any allegation of wrongdoing by the company.”

ASIC also issued a statement confirming its involvement in the matter, which relates to a criminal investigation it is conducting.

Nuix shares closed at $2.56 on Thursday.

The raid concerned “matters that have come to light subsequent to Nuix’s IPO and listing in December 2020. ASIC’s investigation into certain individuals remains ongoing,” an ASIC spokesman told Fairfax Media.

The statement also said that the AFP had executed search warrants at several premises “related to a criminal investigation.”

Nuix was floated by Macquarie Group which retains a 30% stake in the troubled tech stock after selling a 46% stake into the IPO last December.

ASIC declined to disclose who was the subject of Thursday’s raid.

Nuix provides the software platforms that regulators, police investigators and tax officials around the world use to run top-sensitive investigations.

 

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About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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