Harvey Norman (ASX:HVN) has been dealt a legal setback following a ruling by the Federal Court of Australia.
The court found in favour of the Australian Securities and Investments Commission in the case identified as proceedings no. NSD843/2022.
The decision, handed down today, comes amid allegations brought forth by ASIC against the company.
A hearing to determine any penalty is anticipated to be scheduled for next year.
As the legal proceedings continue, this development marks a significant moment for the company.
In response to the ruling, Harvey Norman has stated that it will scrutinise the court's reasons meticulously before deciding on potential avenues for appeal.
The company's board of directors authorised the announcement to the ASX.
"The company will review those reasons carefully before deciding whether to appeal the decision," stated Chris Mentis, company secretary for Harvey Norman.
The publication of the court's findings and the ongoing review by Harvey Norman signal further developments as the case progresses.
Harvey Norman is engaged in the integrated retail, franchise, property and digital system business. Its principal activities include franchisor; sale of furniture, bedding, computers, communications and consumer electrical products in New Zealand, Singapore, Malaysia, Slovenia, Ireland, Northern Ireland and Croatia.
At the time of reporting, Harvey Norman's share price was $4.84.