Background: GetSwift are a software company that helps businesses streamline their delivery process (i.e. you can track drivers and send live tracking alerts to customers). It was founded back in 2015...and was a bit of an ASX darling.

What happened: But it turns out, nothing was what it seemed. In 2017, this crew had initial trials with clients like CBA and Amazon...but they released announcements to the ASX that made it sound like full-blown contracts.

What else: Now, the Federal Court has found GetSwift and its directors were found to have made misleading statements...all in the name of pumping up the company's share price, and raising millions of buckaroonies.

So what's the key learning?

💡Being an ASX-listed company comes with a whole range of responsibilities. A key one being: disclosure of information. 

💡Public companies have a duty to disclose any information that a reasonable person would expect to have a material effect on the share price (i.e. significant data breaches, large acquisitions, big partnerships...) - good or bad.
💡In this case, GetSwift used a different strategy - share the good news (and inflate it), don't share the bad news (just hide it). It worked...until it didn't. Now it's all unravelled for GetSwift and its directors.