Rural Funds Management Limited as Responsible Entity for the Rural Funds Trust and RF Active v Bonitas Research LLC [2020] NSWSC 61

Supreme Court New South Wales

Medium Neutral Citation: Rural Funds Management Limited as Responsible Entity for the Rural Funds Trust and RF Active v Bonitas Research LLC [2020] NSWSC 61 Hearing dates: 9 December 2019 Decision date: 12 February 2020 Jurisdiction: Equity - Commercial List Before: Hammerschlag J Decision: Declarations as to contraventions. Verdict for the plaintiff, damages to be assessed. Catchwords: CORPORATIONS LAW – CONSUMER LAW – Corporations Act 2001 (NSW) ss 1041D-1041F and 1041H, Australian Securities and Investments Commission Act 2001 (Cth) s 12DA – United States "activist short sellers" circulate and disseminate statements and information about registered management investment schemes in Australia units in which are listed on the Australian Stock Exchange likely to induce persons to dispose of units – where the statements and information are false in material particulars, materially misleading, and deceptive or likely to mislead or deceive – whether requirements of s 1041D are met – whether requirements of ss 1041E, 1041F and 1041H and s 12DA of the ASIC Act are met – requirement under s 1041D for dissemination to the effect that the price will fall because of a transaction or other thing done in relation to financial products in contravention of other provisions and disseminator to have done the transaction or other thing – HELD – such requirement not met here – the dissemination itself cannot be the transaction or thing done – requirements of other sections met – HELD – defendants contravened ss 1041E, 1041F and 1041H and s 12DA of the ASIC Act. Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Corporations Act 2001 (Cth) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: ABN Amro Bank NV v Bathurst Regional Council (2014) 224 FCR 355 Voth v Manildra Flour Mills Pty Ltd (1990) 171 CLR 538 Category: Principal judgment Parties: Rural Funds Management Limited - Plaintiff Bonitas Research LLC - First Defendant Matthew Wiechert - Second Defendant Representation: Counsel: C. Withers with R. Pietriche - Plaintiff