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NZX says Ralec case is settled

NZN 1/12/2016 Edwin Mitson

NZX, the stock market operator, says it has settled all outstanding matters connected to the litigation by Ralec and neither party will appeal the decision.

"Today's announcement means that NZX can finally move on and put this matter behind us once and for all, and direct our valuable resources to growing our business," outgoing chief executive Tim Bennett said.

NZX bought the Clear Grain Exchange from Ralec in 2009 when it was run by chief executive Mark Weldon. The stock market operator had claimed Clear's former owners and their companies misled NZX with "wildly inaccurate" forecasts when it bought the platform for $A7 ($NZ7.3) million, with two earn-outs of $A7 million tied to performance.

On November 16, Justice Robert Dobson ruled both sides' claims were valid, but neither demonstrated there would have been a financial impact had things been different. The case was heard at the High Court in Wellington from May 2 to July 13 this year.

The announcement was made after the market closed. Shares in NZX fell 1 per cent or 1 cent to $1.00, and have dropped 5.6 per cent since the start of the year.

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