The Federal Court of Australia declared yesterday that Citrofresh International (an organic antibacterial product company) and one of their former employees, Ravi Narain, misled investors about the efficacy of their products. Citrofresh and Narain reportedly made misleading statements to the Australian Stock Exchange, namely, that Citrofresh “offers a global solution to reduce and eventually stop the spread of HIV.” The “solution” in question is a post-coital spray that would “act as an invisible condom,” protecting the user by having a “significant impact on reducing the transmission of HIV and [other] sexually transmitted diseases.”
Narain, former managing editor of the company, faces fines of up to $400,000 for two statements made “without reasonable grounds” in 2005, according to the Australian Securities and Investments Commission.
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