Loading
In submissions to the court, Nicholas has admitted to all contraventions and accepted he should pay a penalty, expressed contrition, remorse and apologised unreservedly for his conduct.
ASIC deputy chair Sarah Court said Nicholas’ actions, all the more serious because of his seniority, were a serious breach of ethical and legal obligations.
“Companies have a fundamental responsibility to ensure compliance with their continuous disclosure obligations,” Court said. “By failing to do so, they not only cause harm to investors, by denying them the information they are entitled to, [but] they also erode confidence in Australia’s financial markets.”
Noumi declined to comment.
The Federal Court’s ruling means that ASIC’s case against Noumi, brought in early 2023 following an investigation that began in July 2020, is nearing an end. The legal proceedings have been brought against three defendants: Noumi, Nicholas and Macleod. Jackman has ordered Noumi to pay $5 million in a recent judgment that revealed fresh details about how the cover-up unravelled.
Federal Court judge Ian Jackman is presiding over the case of ASIC vs Noumi, Macleod and Nicholas.
The company changed its name from Freedom Foods to Noumi in November 2021 and received significant backing from its major shareholders, the billionaire Perich family, with Michael Perich installed as chief executive.
Noumi recently tied off a number of lawsuits and is still in the midst of others. Earlier this week, the company announced it had settled a shareholder class action brought by Slater + Gordon and Phi Finney McDonald for an amount to be disclosed later this month once approved by the Supreme Court of Victoria. The settlement sum will be covered by insurance and former auditor Deloitte, which is also a party in the settlement.
Noumi has already had to pay $48 million and $860,000 in legal costs to settle a dispute with a former supplier and Almond Breeze producer, Blue Diamond. It also settled with French tea and coffee company Sunday Collab International for $400,000 after former world surf champion Joel Parker accused Noumi of walking away from an alleged deal.
While Milklab is still a strong-performing brand in the plant-based milk market, the company is struggling to be profitable and has been hit by rising operational costs, lower sales from export markets and a more reluctant, cost-conscious consumer.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.