TerraCom's (ASX:TER) managing director, Danny McCarthy, and three former directors and officers have been cleared of allegations brought by the Australian Securities and Investments Commission (ASIC) before the Federal Court of Australia, a court document showed Friday.

The court found that the executives were not directly involved in any misconduct, including claims that they had inflated the energy value of coal shipments.

In a same-day filing with the Australian bourse, TerraCom confirmed the dismissal of the case against its current and former executives.

The company's shares fell almost 4% in recent Friday trade.