A second class-action lawsuit has been filed against A2 Milk claiming the Australian company misled investors before reporting much-reduced sales.
Those holding company shares saw their value slump by more than 60 per cent.
Shine legal company filed the lawsuit in the Victorian Supreme Court on Tuesday.
The company countered that it “considers that it has at all times complied with its disclosure obligations, denies any liability and will vigorously defend the proceedings.”
Shine Lawyers class action practice leader Craig Allsopp said investors who bought shares between August 19, 2020, and May 7, 2021, had a right to recover their losses.
The claim alleges that A2 Milk had predicted its baby formula would have a high sales performance in financial year 2021 and would contribute to a 30 per cent boost to its earnings.
But the forecast was misleading, Mr Allsopp said.
A2 Milk ended up with a pile of stale inventory that it scrapped. The main reason for the change in fortunes was failure to realize anticipated sales to China.
