Key facts
- A shareholder, Rosherville Pty Ltd, intends to seek court permission to sue former ASX directors and officers.
- The lawsuit would be a statutory derivative action brought on behalf of ASX.
- The action relates to alleged breaches of duty concerning the failed blockchain-based CHESS overhaul.
- ASX stated there are no allegations against the exchange itself.
- The Australian Securities and Investments Commission (ASIC) previously sued ASX for misleading the market about the project.
An Australian Securities Exchange (ASX) shareholder, Rosherville Pty Ltd, has informed the exchange of its intention to seek Federal Court permission to sue former ASX officers and directors. The proposed legal action, a statutory derivative action, alleges breaches of duty connected to the exchange's costly and ultimately abandoned blockchain-based CHESS overhaul. ASX confirmed it received the notification but stated there were no allegations against the exchange itself. The specific former officials targeted, the details of their alleged breaches, and the remedies sought have not been disclosed. The court has yet to consider the application. This move follows ASX's admission in June 2026 of misleading the market about the project's progress, which led to a $14.4 million penalty and $2.1 million in costs awarded to the Australian Securities and Investments Commission (ASIC). ASIC had sued ASX for allegedly lacking a reasonable basis to state in February 2022 that the project was progressing well and on track for an April 2023 launch. The CHESS replacement project, initially exploring distributed-ledger technology with Digital Asset, faced repeated delays and was formally abandoned in May 2023 in favor of more conventional technology.