Rivkin Financial Services (RFS) has had two legal disputes relating to accusations of insider trading activities in its stock dismissed in the Federal Court of New South Wales.
The ruling, handed down last week, clears both RFS chief executive Andrew Davis and his associated companies along with a trio of firms linked to corporate raider Farooq Khan.
Both parties, who have been jostling for control of the group formerly spearheaded by disgraced stockbroker Rene Rivkin, had accused the other of underhand and illegal means of acquiring shares in RFS.
The board of RFS took umbrage at accusations made by Khan and his associate Christopher Ryan that the commencement of proceedings by the board was an abuse of process.
However, the court ruling deemed that the action had not been shown to be unfair to the Khan companies or to other stakeholders in RFS.
“There has been no suggestion that the proceeding is in some fashion an abuse of process. That is to say, there is no basis for a contention that the proceeding was commenced for some ulterior purpose other than to vindicate the stance taken by the company [RFS] in relation to the acquisition of shares in the company [RFS] by the Khan Companies,” the Court found.
The matter arose in July when RFS initiated proceedings against three Khan linked companies – Sofcom, Fast Scout and Altera Capital – with claims that an acquisition of RFS shares by the trio was in contravention to the Corporations Act.
Two weeks later the three firms launched a cross claim against Davis personally and his associated companies – the Alan Davis Group, Network Limited and Cole Kablow Superannuation – which has now also been dismissed.
The Federal Court made no ruling on cost, although a directions hearing has been scheduled for this Friday.
Last week technology group IWL became a major RFS shareholder after it forked out more than $2.5 million to take a 10 per cent stake in the group.
