Yesterday the Federal Court rejected claims made by the Australian Securities and Investments Commission (ASIC) against Fortescue Metals
(ASX:FMG).
ASIC had claimed that chief executive Andrew Forrest and Fortescue misled the market by over claiming it had signed agreements with Chinese companies in 2004 to build and finance its Pilbara iron ore projects. The corporate watchdog also said Fortescue had failed to comply with continuous disclosure obligations by not correcting its statements and if the court had agreed, Mr Forrest would have been removed from the board.
The court ordered ASIC to pay Fortescue’s legal costs for the case which are expected to be over $10 million.
It is the third court dismissal of a case brought about by ASIC in recent months.
In 2009 Fortescue Metals reported a maiden net profit of $626.13 million for the year ended June 30.
