Knowledge (XXG)

ASIC v GetSwift Ltd

Source 📝

119:(ASIC) commenced civil proceedings against Directors Bane Hunter and Joel Macdonald and alleged that each made multiple misleading statements to the public and that they failed to discharge their duties to the public. ASIC later amended its proceedings to include non executive director and company solicitor Brett Eagle. 106:
On 22 January, GetSwift entered into a voluntary trading halt after its shares dropped 55 percent following the investigation. After issuing the halt, the ASX put 28 questions to the company. In its responses GetSwift denied it had ever failed to adequately update the market. However the ASX found
86:
after shares spiked 83% to $ 3.60 following an announcement by the company about a deal with retail giant Amazon. At the same time, the company also announced a deal with YUM! Foods, the operator of KFC and Pizza Hut in Australia, which like the Amazon announcement did not include any information on
174:
In deciding to award the largest ever penalty, Justice Lee said “There is no evidence of contrition or remorse by the two of the company’s senior officers primarily responsible,” and “Indeed, such evidence as there is points in the opposite direction. That Mr Macdonald feels a ‘level of peace’ is
170:
In making his ruling, Justice Lee considered the lack of remorse by those involved and in particular said Mr Hunter was “unrepentant and lacks any insight into his conduct” and “should not be in charge of the affairs of a company”, adding ASIC had been unable to “explore where all the money raised
49:
In February 2023 the Federal Court handed down the largest ever penalty for corporate misconduct, with $ 18m in penalties issued to Getswift and its directors Hunter, Macdonald and Eagle and disqualifying each director from managing Australian corporations for 15 years, 12 years and 2 years
45:
In November 2021 the Federal Court found the directors were knowingly involved in multiple continuous disclosure breaches and made multiple deceptive contraventions and breached their director duties. GetSwift appealed decision before later withdrawing its appeal.
41:
and Brett Eagle made representations in a series of ASX announcements relating to client agreements, between February 2017 and December 2017 that were misleading and that it failed to notify the ASX of material information in relation to these client agreements.
102:
claimed the company had twice failed to update the market that it had lost significant contracts with Australian businesses, with many of its announced partnerships failing to proceed beyond pilot stage. At the time, the company had made 18 such announcements.
606: 343: 700: 175:
not only cold comfort to those that have suffered loss, but also reflects a troubling and defiant lack of insight into the scale and seriousness of the wrongdoing set out in excruciating detail in the .”
133:
Justice Lee ruled Bane Hunter was “knowingly involved” in 16 of the 22 continuous disclosure breaches, 29 of the misleading and deceptive conduct contraventions and had breached his director's duties.
122:
In June 2020 ASIC presented its case to the Federal Court. ASIC alleged GetSwift and its directors misled investors in 2017 in a series of announcements that sent its share price up 1900 per cent.
238: 151:
In February 2023, the Federal Court handed down the largest ever penalty in Australia's history against GetSwift and its directors Joel Macdonald, Bane Hunter and Brett Eagle in a x page ruling.
87:
how the deal would affect the company's financials. The company had announced a partnership with the Commonwealth Bank of Australia with an estimated aggregate transaction value of $ 9billion.
802: 140:
was “knowingly involved” in 20 of the 22 continuous disclosure breaches, 33 of the misleading and deceptive conduct contraventions and had breached his director's duties.
30:(ASIC) against technology company GetSwift Ltd which resulted in the largest ever penalty awarded for corporate misconduct and resulted in reforms to listing rules on the 116: 27: 726: 265: 171:
from investors went”. He also found Mr Macdonald was focused on making money and had “little understanding or regard for his legal obligations as a director”.
189:"Mr Macdonald has little understanding or regard for his legal obligations as a director, when they get in the way of pursuing a strategy to make money." 480: 792: 182:"GetSwift and those primarily responsible for its wrongful conduct, could be described as representing the unacceptable face of start-up capitalism," 687: 210: 637: 143:
Justice Lee found Brett Eagle was “knowingly involved” in three of the 22 continuous disclosure breaches and had breached his director's duties.
61:
In 2013 Former AFL footballers Joel Macdonald, James Strauss and Rohan Bail launched alcohol delivery service Liquorun. In 2015 after raising
507: 75:
Six months later, the company raised $ 24 million in funding in June 2017 from new and existing investors including US institutions Horney,
762: 53:
The case caused the ASX to tighten its rules now requiring all public directors to "provide evidence of their good fame and character".
399: 662: 556: 79:
and Regal. In this capital raise Hunter was quoted in saying "Data talks, Bullshit walks" and reported annual revenues of $ 336,356.
318: 186:"Mr Hunter is a man who is presently wholly unsuited to be in a position of responsibility in a public company," Justice Lee said. 452: 426: 291: 797: 158:
Managing director and former CEO Joel Macdonald was fined $ 1 million and disqualified from managing corporations for 12 years.
37:
In June 2020 ASIC began proceedings in the Federal Court against GetSwift Ltd alleging GetSwift and its directors Bane Hunter,
607:"19-039MR ASIC commences civil penalty proceedings against GetSwift Limited and its directors Bane Hunter and Joel Macdonald" 198: 155:
Former executive chairman and CEO Bane Hunter was fined $ 2 million and disqualified from managing corporations for 15 years.
69: 31: 161:
Solicitor and non-executive director Brett Eagle was fined $ 75,000 and disqualified from managing corporations for 2 years.
344:"21-298MR ASIC successful in Federal Court against GetSwift and its directors Bane Hunter, Joel Macdonald and Brett Eagle" 750: 581: 215: 90:
Less than a week after having its shares suspended, GetSwift issued 18,750,000 shares at $ 4 each raising $ 75 million.
367: 99: 23: 807: 688:
https://download.asic.gov.au/media/tltlok0f/21-298mr-asic-v-getswift-limited-liability-hearing-2021-fca-1384.pdf
531: 701:"Collapsed tech start-up GetSwift slugged with 'largest ever' penalty of $ 15m for misleading statements" 65:, the company pivoted to providing software to delivery services and rebranded as GetSwift. 62: 137: 38: 786: 751:
https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2023/2023fca0100
239:"23-029MR Federal Court sanctions Getswift with record continuous disclosure penalty" 76: 266:"Disclosure obligations: ASX tightens listing rules after GetSwift, Big Un debacles" 83: 481:""Data talks, bullshit walks": How GetSwift raised $ 24 million from US investors" 130:
In November 2021 the Federal Court found in favour of ASIC in a 800 page ruling.
98:
On 19 January 2018, several weeks after the trading halt an investigation by the
532:"Australia's GetSwift shares surge after deals with Amazon.com, Yum Brands" 763:"Getswift slugged with 'largest ever' penalty for misleading statements" 727:"Former AFL player handed $ 1m fine, ban as GetSwift hit with penalties" 508:"Startup GetSwift suspends trading on ASX amid questions over contracts" 638:"GetSwift found guilty of multiple 'PR-driven' disclosure breaches" 453:"How GetSwift got here: A timeline of the tech startup's troubles" 107:
the responses unsatisfactory and the company remained suspended.
292:"ASIC launches civil lawsuit against GetSwift and two directors" 82:
On 1 December 2018, the ASX placed GetSwift into a temporary
400:"GetSwift to pay $ 18m for 'unlawful PR-driven approach'" 178:
In delivering the ruling, Federal Court Justice Lee said:
663:"GetSwift misled investors over profit potential: ASIC" 57:
Background and timeline of events leading to civil case
319:"GetSwift appeals court loss to ASIC, as CEO resigns" 803:Australian Securities and Investments Commission 427:"GetSwift's comeuppance is no deterrent at all" 117:Australian Securities and Investment Commission 28:Australian Securities and Investment Commission 8: 211:ASIC v GetSwift Limited (Liability Hearing) 68:The newly rebranded GetSwift listed on the 16:Decision of the Federal Court of Australia 368:"GetSwift drops appeal over loss to ASIC" 313: 311: 216:ASIC v GetSwift Limited (Penalty Hearing) 582:"Getswift shares placed in trading halt" 227: 632: 630: 628: 626: 557:"GetSwift: too fast for its own good" 502: 500: 474: 472: 94:Investigation by AFR and trading halt 7: 699:Sharples, Sarah (20 February 2023). 421: 419: 394: 392: 390: 388: 260: 258: 233: 231: 14: 290:Williamson, Rachel (2019-02-22). 793:Federal Court of Australia cases 111:ASIC launches civil proceedings 479:Castles, Angela (2017-06-25). 199:ACCC v Cabcharge Australia Ltd 70:Australian Securities Exchange 32:Australian Securities Exchange 1: 725:Muroi, Millie (2023-02-17). 667:Australian Financial Review 642:Australian Financial Review 586:Australian Financial Review 561:Australian Financial Review 451:StartupSmart (2018-01-28). 431:Australian Financial Review 372:Australian Financial Review 323:Australian Financial Review 270:Australian Financial Review 100:Australian Financial Review 824: 24:Federal Court of Australia 22:is a 2023 decision of the 731:The Sydney Morning Herald 72:(ASX) in October 2016. 798:2023 in Australian law 184: 147:Federal Court judgment 180: 115:In February 2019 the 20:ASIC v GetSwift Ltd 136:Justice Lee found 767:www.arnnet.com.au 815: 808:2023 in case law 777: 776: 774: 773: 759: 753: 747: 741: 740: 738: 737: 722: 716: 715: 713: 711: 696: 690: 684: 678: 677: 675: 674: 659: 653: 652: 650: 649: 634: 621: 620: 618: 617: 603: 597: 596: 594: 593: 578: 572: 571: 569: 568: 553: 547: 546: 544: 543: 528: 522: 521: 519: 518: 504: 495: 494: 492: 491: 476: 467: 466: 464: 463: 448: 442: 441: 439: 438: 423: 414: 413: 411: 410: 396: 383: 382: 380: 379: 364: 358: 357: 355: 354: 340: 334: 333: 331: 330: 315: 306: 305: 303: 302: 287: 281: 280: 278: 277: 262: 253: 252: 250: 249: 235: 823: 822: 818: 817: 816: 814: 813: 812: 783: 782: 781: 780: 771: 769: 761: 760: 756: 748: 744: 735: 733: 724: 723: 719: 709: 707: 698: 697: 693: 685: 681: 672: 670: 661: 660: 656: 647: 645: 636: 635: 624: 615: 613: 605: 604: 600: 591: 589: 580: 579: 575: 566: 564: 555: 554: 550: 541: 539: 530: 529: 525: 516: 514: 506: 505: 498: 489: 487: 478: 477: 470: 461: 459: 450: 449: 445: 436: 434: 425: 424: 417: 408: 406: 398: 397: 386: 377: 375: 366: 365: 361: 352: 350: 342: 341: 337: 328: 326: 317: 316: 309: 300: 298: 289: 288: 284: 275: 273: 264: 263: 256: 247: 245: 237: 236: 229: 224: 207: 195: 168: 149: 128: 113: 96: 63:seed investment 59: 26:brought by the 17: 12: 11: 5: 821: 819: 811: 810: 805: 800: 795: 785: 784: 779: 778: 754: 742: 717: 691: 679: 654: 622: 598: 573: 548: 523: 496: 468: 443: 415: 384: 359: 335: 307: 282: 254: 226: 225: 223: 220: 219: 218: 213: 206: 205:External links 203: 202: 201: 194: 191: 167: 166:Judges remarks 164: 163: 162: 159: 156: 148: 145: 138:Joel Macdonald 127: 124: 112: 109: 95: 92: 58: 55: 50:respectively. 39:Joel Macdonald 15: 13: 10: 9: 6: 4: 3: 2: 820: 809: 806: 804: 801: 799: 796: 794: 791: 790: 788: 768: 764: 758: 755: 752: 746: 743: 732: 728: 721: 718: 706: 702: 695: 692: 689: 683: 680: 668: 664: 658: 655: 643: 639: 633: 631: 629: 627: 623: 612: 608: 602: 599: 587: 583: 577: 574: 562: 558: 552: 549: 537: 533: 527: 524: 513: 512:CRN Australia 509: 503: 501: 497: 486: 482: 475: 473: 469: 458: 454: 447: 444: 432: 428: 422: 420: 416: 405: 401: 395: 393: 391: 389: 385: 373: 369: 363: 360: 349: 345: 339: 336: 324: 320: 314: 312: 308: 297: 293: 286: 283: 271: 267: 261: 259: 255: 244: 240: 234: 232: 228: 221: 217: 214: 212: 209: 208: 204: 200: 197: 196: 192: 190: 187: 183: 179: 176: 172: 165: 160: 157: 154: 153: 152: 146: 144: 141: 139: 134: 131: 125: 123: 120: 118: 110: 108: 104: 101: 93: 91: 88: 85: 80: 78: 73: 71: 66: 64: 56: 54: 51: 47: 43: 40: 35: 33: 29: 25: 21: 770:. Retrieved 766: 757: 745: 734:. Retrieved 730: 720: 708:. Retrieved 704: 694: 682: 671:. Retrieved 669:. 2020-06-15 666: 657: 646:. Retrieved 644:. 2021-11-10 641: 614:. Retrieved 610: 601: 590:. Retrieved 588:. 2018-01-22 585: 576: 565:. Retrieved 563:. 2018-01-19 560: 551: 540:. Retrieved 538:. 2017-12-01 535: 526: 515:. Retrieved 511: 488:. Retrieved 485:SmartCompany 484: 460:. Retrieved 457:SmartCompany 456: 446: 435:. Retrieved 433:. 2023-02-20 430: 407:. Retrieved 403: 376:. Retrieved 374:. 2022-05-18 371: 362: 351:. Retrieved 347: 338: 327:. Retrieved 325:. 2022-02-20 322: 299:. Retrieved 295: 285: 274:. Retrieved 272:. 2018-03-18 269: 246:. Retrieved 242: 188: 185: 181: 177: 173: 169: 150: 142: 135: 132: 129: 121: 114: 105: 97: 89: 84:trading halt 81: 74: 67: 60: 52: 48: 44: 36: 19: 18: 705:News.com.au 611:asic.gov.au 348:asic.gov.au 243:asic.gov.au 787:Categories 772:2023-03-07 736:2023-03-07 673:2023-03-07 648:2023-03-07 616:2023-03-07 592:2023-03-07 567:2023-03-07 542:2023-03-07 517:2023-03-07 490:2023-03-07 462:2023-03-07 437:2023-03-07 409:2023-03-07 378:2023-03-07 353:2023-03-07 329:2023-03-07 301:2023-03-07 276:2023-03-07 248:2023-03-07 222:References 296:Stockhead 193:See also 126:Findings 710:7 March 536:Reuters 34:(ASX). 712:2023 404:MSN 77:IFM 789:: 765:. 729:. 703:. 665:. 640:. 625:^ 609:. 584:. 559:. 534:. 510:. 499:^ 483:. 471:^ 455:. 429:. 418:^ 402:. 387:^ 370:. 346:. 321:. 310:^ 294:. 268:. 257:^ 241:. 230:^ 775:. 749:[ 739:. 714:. 686:[ 676:. 651:. 619:. 595:. 570:. 545:. 520:. 493:. 465:. 440:. 412:. 381:. 356:. 332:. 304:. 279:. 251:.

Index

Federal Court of Australia
Australian Securities and Investment Commission
Australian Securities Exchange
Joel Macdonald
seed investment
Australian Securities Exchange
IFM
trading halt
Australian Financial Review
Australian Securities and Investment Commission
Joel Macdonald
ACCC v Cabcharge Australia Ltd
ASIC v GetSwift Limited (Liability Hearing)
ASIC v GetSwift Limited (Penalty Hearing)


"23-029MR Federal Court sanctions Getswift with record continuous disclosure penalty"


"Disclosure obligations: ASX tightens listing rules after GetSwift, Big Un debacles"
"ASIC launches civil lawsuit against GetSwift and two directors"


"GetSwift appeals court loss to ASIC, as CEO resigns"
"21-298MR ASIC successful in Federal Court against GetSwift and its directors Bane Hunter, Joel Macdonald and Brett Eagle"
"GetSwift drops appeal over loss to ASIC"



Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.

↑