What the Federal Court decided
The Federal Court has found that Rory Macleod, former managing director and CEO of Noumi Limited (previously Freedom Foods Group Limited), breached the Corporations Act in relation to Noumi's financial reporting.
The findings cover the year ended 30 June 2019 (on a limited basis) and the half-year ended 31 December 2019.
What the Court found
The Court found that Mr Macleod:
- failed to exercise reasonable care and diligence as a director
- failed to take all reasonable steps to ensure Noumi met its financial reporting obligations
The case centred on two specific issues:
- Inventory: Noumi improperly treated unsaleable inventory in its financial reports.
- Revenue recognition: Noumi recognised revenue from lactoferrin sales where key conditions - including actual delivery of the product - had not been met.
Claims that were dismissed
The Court dismissed some of ASIC's claims, including the continuous disclosure case and the false or misleading information case.
Penalties and next court date
The matter returns to court for case management on 27 August 2026, where penalties for Mr Macleod are expected to be addressed.
For context, Noumi itself was previously ordered to pay a $5 million penalty. Former CFO Campbell Nicholas was previously fined $100,000 and disqualified from managing corporations for four years.
Where to follow updates
Updates on penalties for Mr Macleod are published on the ASIC newsroom at https://asic.gov.au/about-asic/news-centre/.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.