(Updates to add ASX's comment in the fourth and fifth paragraphs)
ASX (ASX:ASX) is set to pay a pecuniary penalty of AU$20.5 million for misleading disclosures in February 2022 over the progress of a technology upgrade project, Australia's Federal Court ruled on Friday.
The case, brought by the Australian Securities and Investments Commission (ASIC), centered on a claim by ASX that its CHESS Replacement Project was progressing well, even though the project was facing delays, according to the court's judgment filing.
The company disclosed a settlement with the ASIC in June, agreeing to contribute AU$3 million to the regulator's legal costs in addition to the penalty.
ASX accepted the court's findings and recognized the seriousness of the matter while noting that the judgment records that ASIC accepted that ASX did not deliberately intend to mislead the market, a spokesperson for the bourse operator said in a statement in response to a request for comment from.
"Since resetting the project, ASX has made significant changes to strengthen communication, improve delivery oversight and provide dedicated forums for stakeholder engagement and input," the spokesperson said.
The company's shares fell 2% in recent Friday trade.