The Australian Securities & Investments Commission (ASIC) announced that the Federal Court has ordered Electro Optic Systems Holdings Limited (EOS) to pay an AUD 4 million pecuniary penalty, after finding it breached continuous disclosure requirements by failing to disclose a materially significant downgrade to its 2022 revenue forecast for about 14 weeks. The Court also ordered EOS to pay ASIC’s costs as agreed or taxed. The Court found that EOS continued to inform the Australian Securities Exchange (ASX) in May and June 2022 that it expected 2022 revenue to equal or exceed AUD 212.3 million, but by 25 July 2022 it was aware revenue was likely to be about AUD 164 million, with a possibility of an additional AUD 27 million. EOS did not explicitly correct its guidance until 31 October 2022, and the Court declared EOS contravened section 674A(2) of the Corporations Act on 25 July 2022 and, by virtue of section 1317QA, on each subsequent day until 31 October 2022. ASIC has separately commenced proceedings against former EOS CEO and director Dr Ben Greene in relation to alleged breaches of directors’ duties.
Australian Securities & Investments Commission 2026-04-09
Australian Securities & Investments Commission secures Federal Court AUD 4 million penalty against Electro Optic Systems for 14-week continuous disclosure breach
The Australian Securities & Investments Commission announced that the Federal Court has ordered Electro Optic Systems Holdings Limited to pay an AUD 4 million pecuniary penalty for breaching continuous disclosure requirements by failing to disclose a materially significant downgrade to its 2022 revenue forecast for about 14 weeks. The Court found EOS contravened section 674A(2) of the Corporations Act from 25 July 2022 to 31 October 2022 by not correcting guidance that 2022 revenue would equal or exceed AUD 212.3 million when it was aware revenue was likely to be about AUD 164 million, with a possibility of an additional AUD 27 million. ASIC has separately commenced proceedings against former EOS chief executive officer and director Ben Greene for alleged breaches of directors’ duties.