Aussie law firm files class action on a2 Milk (ASX:A2M)

Law firm Slater and Gordon has filed a class action against the a2 Milk Company (ASX:A2M) on behalf of investors who bought shares over a nine-month period during which the infant formula maker posted four earnings downgrades. 

The proceeding has been filed in the Supreme Court of Victoria, regarding shareholders who acquired interest in fully paid ordinary shares in the company, on the ASX or NZX main board between 19 August last year and 9 May this year. 

The class action alleges that a2 Milk engaged in misleading or deceptive conduct in breach of the Corporations Act, by providing and maintaining the FY21 guidance and subsequent representations which did not take into account a number of factors.

The $4.8 billion company has been notified, and named as the defendant. The news follow the announcement in May, when they were made aware Slater and Gordon were investigating them, yet nothing had been filed at the time.

A2 Milk told the ASX this morning that they have complied with its disclosure obligations at all times, deny any liability and will vigorously defend the proceedings. A2 Milk said they remain confident in the underlying fundamentals of the business and growth potential.

Shares in The a2 Milk Company (ASX:A2M) are trading 1.8 per cent lower at $6.40.