On Wednesday, Federal Court Justice John Gilmour cleared one of the richest men in Australia of all charges of fraud that were raised when allegations were made that he had misled investors about deals that his giant iron ore business had managed to sign with a Chinese firm in 2004, a news which had sent his company's shares soaring almost overnight.

A suit slapped by antitrust regulator, the Australian Securities and Investments Commission, which said that Andrew Forrest and his Fortescue Metals Group Ltd. had been actively involved in "misleading and deceptive conduct", was rejected by the court.

In 2003, Fortescue, founded by Mr. Forrest, rose from scratch and went on to become the country's third largest exporter of iron ore, on the back of a series of deals with companies across China that had helped accelerate the production and growth of the firm.

After the ruling, Mr. Forrest will now be able to continue acting as the leader of his firm, in which his stake is currently estimated to be worth nearly A$2.4 Billion ($2.1 Billion).

After the announcement of clearing of all the charges, shares of Fortescue managed to sky rocket.