The Australian Securities Investment Commission (ASIC) has appealed the dismissal of its case against Fortescue Metals Group (FMG) and its chief executive Andrew ‘Twiggy’ Forrest.
Last month ASIC saw it case against Fortescue, where it accused the miner of misleading investors over the status of deals signed with Chinese companies in 2004, dismissed in the Federal Court.
The case states that FMG had told the market it had secured contracts with Chinese interests to develop Fortescue’s Pilbara operations.
The case was completely dismissed by Justice Gilmour last month with costs awarded to FMG and Forrest.
However, on Thursday ASIC announced that it had filed an appeal against the decision.
“ASIC considers that the findings of Justice Gilmour raise important issues as to the proper interpretation and application of provisions of the Corporations Act,” ASIC said.
“These issues warrant an appeal,” it announced.
Fortescue chairman Herb Elliot stated that “while we recognise ASIC has a legal right to appeal, the judgement was unequivocal in our favour.
“It is disappointing that after nearly three years of legal proceedings which concluded in a strongly worded judgement in favour of the defendants, ASIC has still elected to pursue the Company and Mr Forrest,” Elliot added.
Fortescue has stated that it will present the same defence to the appeal as it did to the original proceedings.