An in-principle settlement has been reached in the a2 Milk Shareholder Class Action, subject to Court approval.
The proceeding is the consolidation of two class actions commenced by Slater and Gordon and Shine Lawyers in October 2021 and November 2021, respectively.
On 14 June 2022, the Supreme Court of Victoria ordered that the proceedings be consolidated, with both firms jointly representing the plaintiffs and group members.
The claim alleged that between 19 August 2020 and 9 May 2021, the a2 Milk Company Ltd made misleading or deceptive representations and failed to comply with its continuous disclosure obligations as an ASX and NZSX listed company, in breach of Australian and New Zealand law. The a2 Milk Company Ltd denies these allegations.
The in-principle settlement amount is A$62 million, inclusive of interest and costs. The parties are continuing to negotiate the deed of settlement.
Slater and Gordon Head of Class Actions Emma Pelka-Caven said the in-principle settlement was an important step in proceedings.
"The in-principle settlement represents a positive outcome and a substantial step toward resolution for group members. If approved, more than 70 per cent of the settlement sum will go to group members."
Shine Lawyers Practice Leader Jonathan Wertheim said: "This $62 million in-principle settlement represents a fair outcome for group members and avoids the delay and uncertainty of a lengthy trial."
The proposed settlement remains subject to approval by the Court. In reaching this in-principle settlement, the a2 Milk Company Ltd makes no admission of liability.
The firms will contact group members in due course to detail next steps in the case.
