ASIC begins appeal against Fortescue Metals Group court win

The Australian Securities and Investments Commission (ASIC) is continuing its bid to prove Fortescue Metals Group Ltd (FMG) misled investors over "binding" deals with Chinese entities that never eventuated.

The corporate watchdog is appealing a decision by Justice John Gilmour in Perth's Federal Court last year to dismiss ASIC's claims against the miner and its chief executive Andrew Forrest regarding statements made between August 2004 and March 2005.

ASIC alleges Fortescue engaged in misleading and deceptive conduct by overstating the substance and legal effect of agreements with China Railway Engineering Corporation, China Harbour Engineering Corporation and China Metallurgical Construction Group.

ASIC began making its appeal submissions before the Full Bench of the Federal Court, comprising Chief Justice Patrick Keane, Justice Arthur Emmett and Justice Ray Finkelstein.

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