{"id":367615,"date":"2026-04-07T09:40:09","date_gmt":"2026-04-07T09:40:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/367615\/"},"modified":"2026-04-07T09:40:09","modified_gmt":"2026-04-07T09:40:09","slug":"a2-milk-agrees-to-a62m-settlement-in-shareholder-class-action-case","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/367615\/","title":{"rendered":"A2 Milk agrees to A$62m settlement in shareholder class action case"},"content":{"rendered":"

The full settlement amount will be met by available insurance proceeds, with no impact on 2026 earnings.<\/p>\n

\u201cIn reaching this settlement, a2 Milk makes no admission of liability,\u201d the company said in a statement to the NZX.<\/p>\n

The settlement is subject to the finalisation and execution of a deed of settlement and approval by the Supreme Court of Victoria.<\/p>\n

The issue centred on five statements made by the company between August 19, 2020, and May 10, 2021, in the midst of the Covid-19 pandemic, forecasting revenue and ebitda margin for the 2021 financial year.<\/p>\n

The statements were made to the NZSX and ASX.<\/p>\n

Initial pantry stocking of infant formula in its key market \u2013 China \u2013 resulted in a2 Milk\u2019s share price hitting a record high of $21.51 in July 2020, but the stock later slumped to $4.34 because of the collapse of the unofficial daigou trade channel from Australia to the PRC.<\/p>\n

Group proceedings were filed against a2 Milk in the Supreme Court of Victoria by Slater & Gordon Lawyers in October 2021 and by Shine Lawyers in November of that year, alleging the five statements were misleading and deceptive<\/a>, and that A2 had breached its continuous disclosure obligations.<\/p>\n

In late trading, a2 Milk\u2019s shares were quoted on the NZX at $11.25, down 15c.<\/p>\n

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"The full settlement amount will be met by available insurance proceeds, with no impact on 2026 earnings. \u201cIn…\n","protected":false},"author":2,"featured_media":367616,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[13991,19331,192786,432,9092,19064,12466,138,1121,12781,192789,1656,1349,7224,192787,29188,78,12518,192788,19332,111,139,69,34748,20488,3048,51177,12177,26264,30246,61,2821],"class_list":{"0":"post-367615","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-13991","9":"tag-a2","10":"tag-a62m","11":"tag-action","12":"tag-against","13":"tag-agreement","14":"tag-agrees","15":"tag-business","16":"tag-case","17":"tag-class","18":"tag-commenced","19":"tag-company","20":"tag-court","21":"tag-dairy","22":"tag-duallisted","23":"tag-formula","24":"tag-in","25":"tag-infant","26":"tag-inprinciple","27":"tag-milk","28":"tag-new-zealand","29":"tag-newzealand","30":"tag-nz","31":"tag-proceedings","32":"tag-reached","33":"tag-said","34":"tag-settle","35":"tag-settlement","36":"tag-shareholder","37":"tag-supreme","38":"tag-to","39":"tag-victoria"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/367615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=367615"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/367615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/367616"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=367615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=367615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=367615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}