Data breach hits Courts

👋 G’day

Today’s brief:

• NSW courts face data breach, 9,000 documents leaked.

• Musk’s X appeals ruling, Bret Walker SC says X Corp didn’t exist.

• EY restructures globally, slashes regions and jobs.

Here’s your latest 👇

PRACTICE POINTS

Boardroom battles surge

• Shareholder activism ramps up. Activist campaigns targeted 1000 companies worldwide for the second year running. In Australia, 56 companies were targeted in 2024, up from 54 the year before. And it's working. Australian activists were assessed as having achieved their objectives in 25% of resolved campaigns, up from 16% in 2023. Themes are evolving—activists are pushing both traditional value plays and social impact demands, from climate action at Woodside to pay strikes across the ASX300. And with M&A picking up, expect more noise in boardrooms this year: Allens

• The Federal Government has released a statement that outlines its four-pillar plan to support crypto innovation while ensuring consumer protection. That means regulation is coming. The key pillars are:

  • a framework for Digital Asset Platforms

  • stablecoin regulation

  • a review of the Regulatory Sandbox, and

  • initiatives to unlock blockchain’s broader potential.

  Those dealing with digital products will likely be caught. And the ATO will form a crypto tax working group to clarify obligations under existing laws for those holding digital assets.

• Privilege 101: How do you actually protect legal privilege? Legal professional privilege applies to confidential communications made for the dominant purpose of legal advice or use in actual or anticipated litigation. Here are some tips to preserve it:

  • Label documents clearly (“Confidential and Subject to Legal Professional Privilege”)

  • Limit circulation to need-to-know only

  • Avoid mixing legal and non-legal content

  • Have in-house counsel engage third parties directly: Clayton Utz

WORD ON THE STREET

EY’s global collapse

• EY is collapsing 18 regions into 10 “super” regions. The Asia-Pacific hub—including Australia—will be dissolved, with job cuts expected, particularly across Asia. No announcement has been made to staff yet. The shake-up follows its $1bn attempt to split its audit and consulting divisions, Trump's cost-cutting push, and Labor's $4.7bn consulting cuts. It’s all aimed at slashing costs and lifting partner profits as growth stalls: AFR

• Leak scandal rocks NSW DPP office. NSW chief prosecutor Sally Dowling SC is facing scrutiny after confidential court info about an Aboriginal boy was leaked to 2GB radio station host Ben Fordham, who aired the story to criticise Judge Penelope Wass. Police were investigating whether the leak was by a staffer in a bid to ruin Wass’ reputation, who had criticised Dowling’s conduct. No charges were laid. The matter is now with the ODPP for internal review, yet the office won’t confirm if Dowling approved or was aware of the leak, despite media protocols requiring her sign-off for non-public disclosures: The Australian

• That’s not all that is rocking NSW… the NSW Court has been hit with a major data breach. Police are investigating the cyberattack on the court’s online portal, where 9,000 sensitive documents were illegally downloaded. The breach exposed apprehended violence orders and affidavits. The investigation, led by the cybercrime squad, continues, with the NSW Online Registry temporarily offline. NSW Attorney General Michael Daley assures that the Gov is “taking this incident seriously” and efforts are underway to secure the system… well, you’d hope so: ABC

TALKING POINTS

Tariff turmoil

• The "T" word is back. But this time it’s on copper. Trump’s Commerce Dept is fast-tracking a 25% tariff on copper, with a decision expected within weeks, not months. The news caused frenzy. New York’s copper futures pushed to record highs, rising as much as 3.1%. That created a huge price differential between the London market, causing dealers to fast track copper shipments to the US to capture a more lucrative premium. And markets like China are scrambling, short of copper: Bloomberg

• Labor pushes ahead on Aussie content quotas for streamers. Netflix, Amazon and Disney+ could soon be forced to spend up to 20% of their Aussie revenue on local drama productions. The plan has triggered fresh backlash in the US, with the Motion Picture Association urging Trump to intervene, claiming the rules would breach Australia’s free trade deal with the US: Capital Brief

• Dutton has upped the budget ante, countering Labor’s proposed tax cuts with a $6bn proposal to cut fuel excise by 25¢ per litre for a year, claiming it provides faster relief than Labor's tax cuts, which won't take effect until 2026. It also won’t crunch the deficit as much due to its 1-year limit. Labor’s surprise tax cuts passed the Senate without Coalition support, offering up to $536 extra for 12 million workers, costing $17bn: AFR

TREASURY

DEAL ROOM

IPO fever

• Virgin Australia kicks off its IPO roadshow Monday, but don’t expect talk on pricing—it’s more of an opp for funds to get a soft intro to new CEO Dave Emerson. After Qatar Airways bought 25% for $750m, Bain is tipped to float at a $3bn valuation. Back in the day, Bain was looking for a higher valuation than Qantas, but with Qantas now trading at 5-6x EBITDA, Bain is taking a more realistic stance on pricing: The Australian

• After generating more than $1bn in sales, InfoTrack owner ATI Global eyes an IPO. And its shareholder-backed, with members voting on a float in 2027. The business, backed by $3bn in debt, spans 16 software firms, including Leap Legal and InfoTrack (yes, the same InfoTrack that runs your ASIC and PPSR searches): AFR

• Koala Furniture gears up for $100m IPO, eyeing a $250m–$300m valuation in a May float via Barrenjoey. The mattress-turned-furniture brand is co-founded by Mitch Taylor and Milkrun’s Dany Milham. Backed by $240m revenue and 25% growth, fundies say the pitch is founder-led and fairly priced: The Australian

• In none-IPO news, The Reject Shop has inked a $259m deal with Dollarmama Inc, who will acquire the assorted goods store at $6.68 cash per share – representing a whopping 112% premium to yesterday’s closing price of $3.15 per share. SBA Law acts for The Reject Shop.

SECTOR SPECIFIC

Miners’ mass harassment claims

🚜 DIGGERS

• Lawyers repping class action applicants against BHP and Rio Tinto say the action could involve thousands of women. Claims span 2003 to 2024, alleging systemic sexual harassment, assault and discrimination. The Federal Court heard accusations of obscene messages, groping and assaults. Lawyers say both miners failed to address known risks and provide safe workplaces: Lawyerly

• With the commotion of budget day, Tanya Plibersek quietly delayed her decision on the extension of Woodside’s $30bn North West Shelf until after the federal election. The issue will become campaign ammo for the Coalition in WA, while Woodside called the decision an “absolute disgrace” after waiting 6 years for approvals, warning it jeopardises jobs and energy security: The Australian

🏦 FIN

• ANZ’s board has received the final Oliver Wyman report into cultural failings in its markets unit and alleged misconduct tied to a $14bn bond deal. And it's committed to airing its dirty laundry, backtracking on plans to only share a summary of the report. Now it’s time for the board to consider how to strengthen its risk governance. Watch this space: AFR

• Macquarie Assets is capitalising on emerging trends, with Ben Way leading efforts to reach the A$1 trillion (US$630bn) mark in funds under management. Off the back of their mega $24bn AirTrunk sale, the Group continues to make moves in sectors like AI-driven infrastructure, private credit, and data centres. The asset arm generates 25% of Macquarie’s earnings, with private credit their fastest growing multiple. The fund already eclipses Apollo Asset’s $513bn fund, but lags behind Blackstone’s US$1 trillion fund: The Australian

🏡 RETAIL & REAL ESTATE

• Jeanswest is closing its 90 stores with 600 jobs on the line. The Aussie-born, Hong Kong-owned retailer will clear stock online via administrator Pitcher Partners. It follows Mosaic’s collapse and reflects the online dominance of Shein, Temu and Amazon, now commanding 40% of e-commerce spend: SMH

• GDI has offloaded Perth’s only large format IKEA at 6 Sunray Drive, Innaloo, for $163.75m, locking in a healthy uplift from its $143.5m purchase in 2018: Commo

📱 TECH

• Musk’s X Corp is appealing a court loss, again arguing it didn't exist when the eSafety Commissioner issued a notice to Twitter Inc in Feb 2023 demanding info on how it tackles child sexual abuse content. X failed to comply with the notice, copping a $610k fine but says the notice is invalid anyway post-rebrand. eSafety says it’s a dodge to avoid accountability: Capital Brief

• AustralianSuper has sold its entire $580m (2.26%) stake in WiseTech Global, citing concerns over the company's corporate governance following allegations against co-founder Richard White. The super fund's decision came after White's return as executive chairman, despite a board review revealing issues with his conduct. WiseTech tapped Seyfarth Shaw and HSF for the board review. AusSuper emphasised the importance of ‘good governance’ in its investment decisions: AFR

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