Gone sour: Executives behind Milklab maker’s implosion to face court

The Australian Securities and Investments Commission is suing Noumi and two former top executives who exited the company days before it unveiled a multi-million dollar company write-down thatThe corporate watchdog alleges that former Noumi chief executive Rory Macleod and former chief financial officer Campbell Nicholas were involved in providing misleading information about the company’s financial position, breaching director and officer duties and failing disclosure obligations by doing so.

The share price of Noumi, named as one of three respondents in the Federal Court proceeding, has seesawed today, plummeting by nearly 15 per cent in early morning trading before lifting back into the green and then swinging back down 7.4 per cent in afternoon trading.ASIC’s move to take Macleod and Nicholas to court comes after an investigation that began in July 2020, sparked by the sudden resignations of then-CFO Nicholas on June 30 followed by then-CEO Macleod the following morning.

ASIC is alleging that Macleod and Nicholas failed to disclose information about the value of write-downs, the truth of the company’s revenue and profit figures, and were involved in the company’s failure to disclose the real figures for the 2019 financial year and the 2020 half-year ending 31 December 2019.The corporate watchdog is also alleging the pair gave misleading information to directors, auditors and shareholders of the company as well as to the ASX.

Freedom Foods was rescued by its majority shareholder, the billionaire Perich family, rebranded itself as Noumi in late 2021, and is rolling out a company turnaround.After Noumi revealed its reinstated figures, high-profile law firm Slater + Gordon filed a shareholder class action lawsuit, followed by another from Phi Finney McDonald funded by Omni Bridgeway in late February 2021. The two class actions have been rolled into one proceeding.

Source: News Formal (newsformal.com)

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