Federal Court Fines Harvey Norman, Latitude Financial Over Misleading Conduct
Harvey Norman Holdings (ASX:HVN) was ordered by the Federal Court of Australia to pay a AU$35 million penalty, while Latitude Group Holdings (ASX:LFS) unit Lattitude Financial Services has been penalized AU$20 million in an Australian Securities and Investments Commission (ASIC)-initiated proceeding over misleading conduct, according to a Tuesday filing with the Australian bourse.The companies were also ordered to cover ASIC's legal costs, while Harvey Norman was required to publish an adverse publicity notice on its website, per the filing.Harvey Norman had already recognized AU$16.2 million in provisions and expects to record an additional expense for the remaining amount in the fiscal year ending June 30, the filing said.Harvey Norman said it did not intend to engage in unlawful conduct, apologized to the court and its customers, and reaffirmed its commitment to compliance, according to a separate filing.
