ATM - A2 Milk Corporation Limited

**winner69** · 31-05-2021, 09:35 AM

Originally Posted by bull....

a2 about to be sued .... wait for other suitors to appear as well i reckon they all want some of a2 cash pile. no good for the company be tied up in law suits for ever now.

Media reporting regarding potential class action

https://www.nzx.com/announcements/373089

Slater and Gordon investigates possible a2 Milk class action

Based on its investigations to date, Slater and Gordon wrote in an email to investors viewed by The Australian Financial Review that shareholders who had purchased stock on both the ASX and NZX between August 19, 2020 and May 7, 2021 may have basis for a claim

https://www.afr.com/companies/manufa...0210527-p57vlj

If class action wins who pays ................

**bull....** · 31-05-2021, 09:37 AM

Originally Posted by Blue Skies

Could this be connected to directors selling large chunks of stock at the peak and the disconnect between what was being forecast & reality?

all the details are in the AFR story

**Balance** · 31-05-2021, 09:39 AM

There will be a few sleepless nights ahead for the amateurish directors & managers who sold shares in August 2020

**winner69** · 31-05-2021, 09:39 AM

Media reporting regarding potential class action

The a2 Milk Company (“the Company”) is aware of media reporting concerning a potential class action against the Company that is apparently being investigated by Slater & Gordon Lawyers. The Company is not aware of any legal proceeding having been filed at this time. The Company believes that it has complied with all applicable disclosure obligations and denies any claim to the contrary. The Company will respond further if and when any legal proceedings are commenced.

**Balance** · 31-05-2021, 09:46 AM

The discovery process will be very interesting if a class action is filed.

When & what did the company directors & managers know when they sold shares and if their defence is that they did not know, why not.

Many billions of dollars at stake and ATM’s cash reserves may not be enough?

Short term, forget about a takeover as no acquirer wants to be involved in a class court action.

**Balance** · 31-05-2021, 09:51 AM

Big question for NZ traders - do they bail before ASX opens or wait for the reaction of the Aussie big hitters?

I know what I will be doing if I have ATM shares which I don’t.

**Beagle** · 31-05-2021, 09:56 AM

19 August 2020 Results presentation with the very interesting title "Building From Strength" I think this legal action will hinge upon whether the directors painted a disingenuous picture of the outlook (including the title of the presentation) just before they dumped vast numbers of shares. http://nzx-prod-s7fsd7f98s.s3-websit...233/328662.pdf Results presentation
Annual Report also very boldly titled Building from STRENGTH http://nzx-prod-s7fsd7f98s.s3-websit...216/328658.pdf

This could involve as Balance has quite rightly suggested, an interesting discovery process of internal emails and communications about who knew what and said what to whom before quite a number of insiders sold huge amounts of shares.

**RTFG** · 31-05-2021, 10:01 AM

I may have missed the point somewhere but surely in any class action the shareholders - ultimately - are taking action against themselves. Unless of course they have already bailed. In reality a class action doesn’t recover any money from anyone other than the directors and that in the larger scheme of things won’t even pay the legal fees. Or have I missed something?