ASIC still pursuing James Hardie after dropping criminal case
The Australian Securities and Investments Commission (ASIC) will begin civil proceedings against manufacturer James Hardie in the NSW Supreme Court this month.
The regulator is suing seven former directors and three former company officers for allegedly misleading investors over the company’s compensation payments for victims of its asbestos products.
ASIC says the proceedings “should bring into sharp focus the fundamental responsibilities of both executive officers and non-executive directors who are ultimately responsible for significant public company decisions and the release of information concerning those decisions to the share market, to employees, creditors and the public”.
But prosecutors have decided not to go ahead with criminal charges over the asbestos compensation scandal. ASIC will also discontinue a related indemnity claim after it was superceded by a final funding agreement for asbestos claims.
James Hardie has said in a statement it will “actively defend the remaining claims”.
Those proceedings relate to allegations that aspects of announcements made in connection with investor roadshows in 2002 were false or misleading.
The company is also liable for a fine of up to $200,000 for allegedly contravening continuous disclosure requirements in March 2003. That followed the cancellation of partly paid shares issued to the company in 2001.
The trial will begin in Sydney on September 29.
The regulator is suing seven former directors and three former company officers for allegedly misleading investors over the company’s compensation payments for victims of its asbestos products.
ASIC says the proceedings “should bring into sharp focus the fundamental responsibilities of both executive officers and non-executive directors who are ultimately responsible for significant public company decisions and the release of information concerning those decisions to the share market, to employees, creditors and the public”.
But prosecutors have decided not to go ahead with criminal charges over the asbestos compensation scandal. ASIC will also discontinue a related indemnity claim after it was superceded by a final funding agreement for asbestos claims.
James Hardie has said in a statement it will “actively defend the remaining claims”.
Those proceedings relate to allegations that aspects of announcements made in connection with investor roadshows in 2002 were false or misleading.
The company is also liable for a fine of up to $200,000 for allegedly contravening continuous disclosure requirements in March 2003. That followed the cancellation of partly paid shares issued to the company in 2001.
The trial will begin in Sydney on September 29.