ASX (ASX:ASX) is set to pay a pecuniary penalty of AU$20.5 million for misleading disclosures in February 2022 over the progress of a technology upgrade project, Australia's Federal Court ruled on Friday.

The case, brought by the Australian Securities and Investments Commission (ASIC), centered on a claim by ASX that its CHESS Replacement Project was progressing well, even though the project was facing delays, according to the court's judgment filing.

The company disclosed a settlement with the ASIC in June, agreeing to contribute AU$3 million to the regulator's legal costs in addition to the penalty.

ASX did not immediately reply to a request for comment from MT Newswires on the court's endorsement of the settlement.

The company's shares fell 2% in recent Friday trade.