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

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

Bonitas and Wiechert disseminated statements about RFM and RFF which were materially false, misleading, and made without caring as to their truth, with clear intent to induce persons to dispose of units and reduce their price, thereby contravening ss 1041E, 1041F, 1041H of the Corporations Act and s 12DA of the ASIC Act; however, s 1041D was not contravened as the statutory requirements were not met.

Jurisdiction
Australia
Judgment Date
12 February 2020
Procedural Posture
Principal Judgment / Quantum of Damages to Be Assessed; Declarations Made as to Contraventions
Outcome
Declarations made as to contraventions of ss 1041E, 1041F, 1041H of the Corporations Act and s 12DA(1) of the ASIC Act by Bonitas and Wiechert; verdict for the plaintiff, damages to be assessed.
Legal Topics
['misleading or Deceptive Conduct' 'false or Misleading Statements' 'financial Services and Markets' 'compensation for Contraventions' 'jurisdiction in Cross Border Publication']
['corporations Law' 'consumer Law' 'equity'] ['misleading or Deceptive Conduct' 'false or Misleading Statements' 'financial Services and Markets' 'compensation for Contraventions' 'jurisdiction in Cross Border Publication']

Case Brief

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Procedural Posture

Principal Judgment / Quantum of Damages to Be Assessed; Declarations Made as to Contraventions

Legal Issues

  1. 1 ['Whether Bonitas and Wiechert contravened ss 1041E, 1041F and 1041H of the Corporations Act 2001 (Cth) and s 12DA(1) of the Australian Securities and Investments Commission Act 2001 (Cth)' 'Whether Bonitas and Wiechert contravened s 1041D of the Corporations Act 2001 (Cth)' 'Whether damages are recoverable for the contraventions' 'Jurisdiction to adjudicate contraventions based on publications accessible in Australia']

Ratio Decidendi

Bonitas and Wiechert disseminated statements about RFM and RFF which were materially false, misleading, and made without caring as to their truth, with clear intent to induce persons to dispose of units and reduce their price, thereby contravening ss 1041E, 1041F, 1041H of the Corporations Act and s 12DA of the ASIC Act; however, s 1041D was not contravened as the statutory requirements were not met.

Court Disposition

Declarations made as to contraventions of ss 1041E, 1041F, 1041H of the Corporations Act and s 12DA(1) of the ASIC Act by Bonitas and Wiechert; verdict for the plaintiff, damages to be assessed.

Orders

  • ['Declarations as to contraventions by Bonitas and Wiechert of Corporations Act ss 1041E, 1041F, 1041H and ASIC Act s 12DA(1)' 'Verdict for the plaintiff; damages to be assessed' 'Matter stood over for assessment of damages and further directions']