The Australian Securities & Investments Commission has commenced Federal Court civil penalty proceedings against former Electro Optic Systems Holdings Limited (EOS) CEO and director Dr Ben Greene, alleging he breached his duties of care and diligence in connection with EOS’s failure to promptly disclose a material change to its 2022 revenue guidance. ASIC is seeking civil penalties, disqualification orders and declarations. Between May and June 2022, EOS told the Australian Securities Exchange that it expected 2022 revenue to meet or exceed AUD 212.3 million. ASIC alleges that by 25 July 2022 Dr Greene knew or should have known the company’s 2022 revenue was likely to be substantially lower and that an earnings update was required, but he did not adequately inform the board and voted in favour of deferring disclosure; EOS did not update the market for 14 weeks, until 31 October 2022. ASIC has separately commenced proceedings against EOS supported by a statement of agreed facts and admissions.