The corporate watchdog has launched legal action against the operator of a Clermont mine, after allegations it faked coal quality reports.

The Australian Securities and Investments Commission (ASIC) has claimed Queensland’s TerraCom, and four senior company figures at the time, engaged in conduct that harmed a whistleblower who raised the allegations.

The Federal Court civil proceedings into whistleblower conduct would be the first of their kind.

“This is a significant case because it is the first time ASIC has taken action for alleged breaches of the whistleblower provisions,” ASIC deputy chair Sarah Court said.

“We take any indication that companies are engaging in conduct that harms or deters whistleblowers very seriously.”

Along with TerraCom itself, the legal challenge also named the company’s current managing director Daniel McCarthy and chief commercial officer Nathan Boom.

Former chair Wallace King and former director Craig Ransley were also named.

Between February and March 2020, TerraCom published two ASX announcements, denying the allegations that it had falsified coal quality results.

The announcements followed a period in which TerraCom had the allegations independently investigated by consultancy PricewaterhouseCoopers.

As a result of the investigation, TerraCom dismissed the claims.

ASIC has claimed the four senior company figures did not do enough to ensure the ASX announcements were not “false or misleading”.

It was suggested by publishing those announcements the company also damaged the credibility of the whistleblower.

ASIC obtained the report after carrying out a search warrant at TerraCom’s offices in March 2021.

In August that year, the company sought to prevent ASIC from reviewing the report via an unsuccessful legal challenge.

In a statement today, TerraCom advised shareholders of the lawsuit.

“The company has lawyers engaged and will vigorously defend the proceedings.”

The date for the Federal Court hearing is yet to be set.