Law firm Slater and Gordon is preparing a class-action lawsuit against A2 Milk for misleading investors, reports the Australian Financial Review.
Share prices have dropped by 75 per cent since August’s high of $21.74 Australian.
.The law firm said that A2 may have engaged in misleading or deceptive conduct, and breached stock exchange continuous disclosure rules.
A2 Milk downgraded its earnings forecasts in September and December last year, and then February and May this year.
“There may be basis to allege that by no later than August 19, 2020, a2 Milk was or ought to have been aware the full-year 2021 guidance did not adequately take into account a number of factors which would impact the company’s financial performance,” a letter by Slater and Gordon was quoted as saying.
A2 milk comes from cows with special genetics that reportedly make their milk more digestible.