AustralianSuper sued

👋 G’day

Today’s brief:

• Johnson Winter Slattery teams up with Japan’s TMI Associates.

• ASIC sues AustralianSuper for contravening financial services.

• Dyson Heydon releases controversial new book with foreward by Kirby.

Here’s the insights you need to stay ahead 👇

PRACTICE POINTS

Administrator hit with costs order

• The Federal Court of Australia has ruled that a proposed administrator must exercise appropriate care and diligence to ensure their appointment is valid—failure to do so could result in a costs order. In a recent decision, the court found that iLend Capital improperly appointed an administrator over Jubilee Infrastructure in an attempt to recover debt, a purpose the court deemed invalid under s.436C of the Corps Act. The administrator, Mr Pleash, failed to properly assess whether the appointment had a legitimate basis, leading to Jubilee’s improper administration and unnecessary legal proceedings. As a result, the court ordered Mr Pleash to pay costs: Corrs

• ASIC calls for more tech expertise on boards. Chair Joe Longo warns that cyber risks and technological disruption demand a more diverse skill set. Longo highlighted that while 70% of directors come from legal, finance, or management backgrounds, only 7% have tech expertise—a gap that needs closing. He also urged board members to question management more vigorously, pointing to recent corporate scandals involving WiseTech and Star Entertainment as cases where poor personal behaviour evolved into serious governance failures: Capital Brief

• ASIC continues its crack down on financial services. This time it is suing AustralianSuper for delays in processing nearly 7,000 death benefit claims between 2019 and 2024. Claims took up to 1,140 days to process, causing unnecessary distress. ASIC claims AustralianSuper contravened s.912A(1)(a) and (c) of the Corps Act, including for failing to do all things to ensure their financial services are provided efficiently, honestly and fairly. It brought a similar case against United Super Pty Ltd, the trustee of Cbus late last year.

WORD ON THE STREET

JWS takes on Japan

• Johnson Winter Slattery has teamed up with TMI Associates, one of Japan’s biggest law firms, to boost cross-border work between the two markets. It’s not a merger, but a strategic alliance focused on energy, defence, tech, and real estate: Lawyers Weekly

• Quadrant Private Equity has taken a stake in LegalVision, the NewLaw disruptor with 4,500+ active clients and 30%+ annual growth. The deal marks the first investment from Quadrant Growth Fund No. 3 and aims to supercharge LegalVision’s expansion in AI and legal tech. and Corrs advised Quadrant and G+T advised LegalVision: AFR

• As dealmaking resurges, US firm Latham & Watkins smashed records in 2024, hitting US$7.1m profit per equity partner (up 30%) and US$7bn in revenue for the first time. Despite finance team exits to Sidley Austin, London revenue soared to US$850M: FN London

• Dyson Heydon, the former High Court judge, has released a new book, "Heydon on Contract: Particular Contracts", nearly 5 years after an High Court apologies to the six female associates whom Justice Heydon allegedly sexually harassed. Despite the controversy, Justice Michael Kirby penned a glowing foreword. The book is self-published, sparking further debate about Heydon's reputation within the legal community. Heydon denies the allegations: SMH

TALKING POINTS

Trump’s war against BigLaw

• Trump targets law firms in unprecedented crackdown. The administration has issued executive orders against US law firms like Perkins Coie and Covington & Burling, suspending national security clearances and limiting federal access. The move, tied to past investigations and DEI policies, hurts their ability to act for certain clients. Critics compare it to Nixon's enemies list, warning it threatens the rule of law. “You’re taking away the ability of an attorney to act in their role as a lawyer", says Stetson University law professor. Perkins are fighting back, saying it will challenge the order in court: CNN

• In another unprecedented move, US tariffs on Australian steel and aluminum will kick in later today, after the White House rejected an exemption. Despite efforts by Kevin Rudd, Australia's Ambassador to the US, and meetings with the Trump administration, the exemption was not granted: Bloomberg

• GenAI is shaking up litigation, with experts predicting it will increase access to justice. Aptum’s Nigel Evans says it will make legal action cheaper and more accessible—especially for small claims. He says more people will feel confident launching claims without lawyers, while HSF’s Jason Betts argues AI will also speed up complex litigation: Lawyers Weekly

• 72% of Aussie deep tech startups were founded in the last five years, but scaling is a struggle due to limited VC, industry, and government support, according to Cicada Innovations. VC in Aus accounts for just 17% of funding compared to 20-30% in overseas markets: Capital Brief

TREASURY

DEAL ROOM

OpenAI, CoreWeave’s billion dollar pact

• CoreWeave locks in US$11.9bn deal with OpenAI ahead of its highly anticipated IPO. The Nvidia-backed AI startup will supply OpenAI with AI infrastructure under a five-year contract, while OpenAI grabs a $350M equity stake in CoreWeave at IPO. With a US$35bn+ valuation target, CoreWeave’s debut could set the stage for more AI IPOs: Reuters

• Navy ship builder Austal launches $220m equity raise, tapping Euroz Hartleys for a $200m placement at $3.80 per share—a 15.6% discount—plus a $20m share purchase plan. Funds will support Final Assembly 2 expansion and future growth opportunities: The Australian

• Four months after Peabody Energy’s $US3.78bn swoop on Anglo American’s QLD coal mines, the US miner is selling down a minority stake in its Centurion Mine. Peabody’s bankers at MA Moelis are shopping the 4.3Mt-a-year Bowen Basin project to Asian steelmakers and traders, pitching it as a Tier-1, low-cost, high-margin asset. First-round bids are due in April: AFR

SECTOR SPECIFIC

PwC overhauls partner metrics

🚜 DIGGERS

• Rio Tinto is offering US$9bn (A$14.3bn) in bonds to help repay a bridging loan used to finance its $6.7bn acquisition of Arcadium Lithium, which it completed last week. Despite market pressure, demand was high, with investors placing over $50 billion in orders. The deal came after Rio Tinto scrapped plans for equity sales, opting instead for long-term debt: Bloomberg

• Nickel Industries, the biggest ASX-listed pure-play nickel producer, tanked 24% after Indonesian coal giant Harum Energy dumps half its stake below market price. The sell-off wiped $600M off its value, triggering ASX queries. Investor fears intensified over Indonesia’s proposed mining tax hike (potentially lifting nickel royalties from 10% to 19%): AFR

🏦 FIN

• PwC Australia’s partners are now judged on more than just billings—a shift designed to clean up the firm’s ‘growth at all costs’ culture post-tax leaks scandal. New chairman John Green says the firm tilted too far towards revenue, but changes—like a ‘balanced scorecard’ system measuring culture, brand, client experience, sustainability, and financials—aim to rebuild trust and accountability: AFR

• CBA is on track to complete its major cloud migration by May 2025, fast-tracking the project with a partnership with AWS. The bank is also leveraging AI and generative AI to enhance innovation. This cloud shift will enable CBA to improve services and create an AI factory to drive experimentation across the enterprise: Capital Brief

🏡 RETAIL & REAL ESTATE

• Construction faces cost squeeze. A weak Aussie dollar, rising labour costs, and US tariffs under Trump are offsetting any relief from stabilising material prices. While imported steel is getting cheaper, energy-heavy materials like concrete and bricks keep climbing, adding pressure to an industry already seeing record insolvencies: The Australian

• A cargo ship crashed into oil tanker near the UK coast, triggering multiple explosions and a jet fuel spill. The ship was holding about 140k barrels of jet fuel, and if it all spilled, that equates to about 18,000 tonnes of petroleum: AFR

📱 TECH

• Mike Cannon-Brookes’ Atlassian has a plan to give Williams F1 an edge this weekend’s Grand Prix in Melbourne. That plan includes wiping out outdated habits like tracking key data using Excel spreadsheets, opting for with dynamic tools to streamline the car-building process. With a $56.25bn valuation, Atlassian’s software aims to shave off the milliseconds that makes all the difference in the sport: The Australian

• Meta is testing its first in-house AI chip, set to challenge Nvidia’s dominance. The chip, developed with TSMC, is a dedicated accelerator for AI tasks, offering better power efficiency. If the test goes well, production will scale up as Meta invests heavily in AI, forecasting up to $65bn in related capital expenditure: AFR

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