Embattled news start-up chases former staff for alleged confidentiality breaches

Two media companies with ties to embattled start-up News.net are threatening to sue its former employees and file a report with police, alleging staff breached confidentiality provisions by leaking emails and private information while they were still employed.

Global News and Sport (the business behind News.net) and Australia News, which both list Brendt Munro as sole director, have issued anonymised letters to staff in the past three weeks offering to pay the thousands of dollars News.net owes some employees over an 18-month period. The letters also ask people to confess to breaching confidentiality and non-disparagement clauses in their contracts to avoid being sued for damages.

Letters sent to staff, seen by The Sydney Morning Herald and The Age, allege employees failed to fulfil basic duties such as updating the website, and misled the company about the number of advertisers onboard (claims which staff deny). A letter by Australia News sent on March 3 threatens staff with legal action but also offers to pay money owed to them over an 18-month period.

Munro denied the correspondence came from him. “I don’t know the content. My focus is getting funds from the parent [sic],” he said.

News.net was an ambitious local journalism venture that planned to employ 170 people and create more than 1500 local, national and international websites that could be linked to the one domain name. Its April 2022 launch was delayed by technology issues, and by June 30, staff started experiencing issues with wages. On October 28, after the release of an investigation by this masthead, the company suspended operations.

Munro told staff last September that the company’s payment delays had been caused by “anti-money laundering” laws and problems with international bank transfers. He then blamed the absence of funds on shareholder issues. The company has still not paid staff the money they are owed.

Michael Norris, a one-time owner of Brisbane radio station 4BH who was called the “chairman” of News.net, is not listed as a director on Australian Securities and Investments Commission filings. Documents seen by this masthead show that over 12 years he sought out high-profile investors and journalists to run News.net, which has never officially launched.