ASIC pursues two ex-Murray Goulburn execs over milk prices
The corporate watchdog has applied to have two former Murray Goulburn executives disqualified from managing companies for allegedly failing to disclose market-sensitive information.
The diary products giant on Monday agreed to pay $42 million to settle a class action brought by more than 1,300 investors over its failure to disclose milk price cuts and profit guidance in a timely manner in 2016.
The Australian Securities and Investments Commission responded to the settlement on Tuesday by filing a fresh case against former managing director Gary Helou and chief financial officer Bradley Hingle in the Federal Court.
ASIC alleges the pair were involved in breaches of their continuous disclose obligations and their duties as directors and officers to act in due diligence.
The watchdog is seeking declarations confirmed both men contravened the Corporations Act and for the court to disqualify them from managing companies.
"ASIC will take action to disqualify directors and officers who cause a company to contravene its market disclosure obligations, or are involved in the company's contravention," commissioner Cathie Armour said in a statement on Tuesday.
The matter is due for a case management hearing on August 2.