A statement of claim has been filed in the Auckland High Court this week against New Zealand infant-formula marketing company A2 Milk Ltd, alleging breaches of the Financial Markets Conduct Act 2013 and the Fair Trading Act 1986.
The opt-in class action seeks compensation for eligible A2 Milk shareholders who allegedly suffered losses as a result of the significant decline in the value of A2 Milk shares between 19 August 2020 and 9 May 2021.
Bankside Chambers members Philip Skelton QC and Carter Pearce are acting as counsel for the representative plaintiff on instructions from Thorn Law. Australian based CHC Investment Fund III Pty Limited, a subsidiary of Court House Capital Pty Ltd is funding the class action claim.
The legal action alleges that as a result of A2 Milk issuing misleading guidance and failing to amend or withdraw that guidance in a timely manner, shareholders were not given accurate information about the Company’s ability to meet its revenue and margin forecasts.”
A2 Milk is also facing two similar class-action lawsuits in Australia.
This legal case highlights the pivotal role a company has in managing shareholder expectations around the company’s ability to realistically achieve its financial projections. Unless material information is disclosed and forecasts amended to reflect updated assessments, it is reasonable for shareholders, especially those who have invested in a publicly listed company like A2 Milk, to assume that existing forecasts remain valid.
Further information on the class action can be found at a2milkclassaction.com
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