ATM - A2 Milk Corporation Limited

[sb9]

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.

Slater & Gordon should look at how they destroyed their own shareholders value before looking at taking class action on other companies. Bit cheeky on them and if anyone can remember BAL class action which didn't go anywhere.
This news is much ado about nothing.

[clearasmud]

Remember the Vocus class action.
We got paid out a reasonable amount.

[aperitif]

Why has it taken S&G this long to file...potential tactic by funds to accumulate? Who knows???

Tightening across E-Commerce platforms now evident. Marketing looks to have ramped up, and pricing now getting up to levels mentioned in the call. Have some screenshots and images for those interested. PM me

[Bjauck]

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.

They were quite upbeat in that presentation. However they did outline the uncertainty in their section on outlook. Given covid, it will be interesting to see how much reliance could be placed on a forecast with a covid caveat.

From the report:

“OutlookFY21
• Globally, there continues to be uncertainty resulting from COVID-19, and the potential for moderation of economic activity. This could impact consumer behaviour in our core markets, as well as participants within the supply chain, most notably in China
• Notwithstanding these uncertainties, overall for FY21, we anticipate continued strong revenue growth supported by our continued investment in marketing and organisational capability”

[Balance]

Slater & Gordon should look at how they destroyed their own shareholders value before looking at taking class action on other companies. Bit cheeky on them and if anyone can remember BAL class action which didn't go anywhere.
This news is much ado about nothing.

Actually the Bellamys Class Action was successful.

https://www.slatergordon.com.au/clas...tions/bellamys

Under the proposed agreement, Bellamy’s will pay a total of $49.7 million, inclusive of interest and costs, to settle the claims of group members in the McKay Class Action and the related proceeding, the Basil Class Action, brought against the company in 2017.

[Balance]

Why has it taken S&G this long to file...potential tactic by funds to accumulate? Who knows???

Tightening across E-Commerce platforms now evident. Marketing looks to have ramped up, and pricing now getting up to levels mentioned in the call. Have some screenshots and images for those interested. PM me

Hardly surprising since ATM has decided to replace IF with rapidly expiry dates with new ones (hence the $90m stock write off).

Issue is - how well will sales hold up with the 'new' stock?

[Balance]

Remember the Vocus class action.
We got paid out a reasonable amount.

Those who bought off the directors & managers in August after the company’s bullish comments - a good prima-facie case that they were misled.

https://www.rnz.co.nz/news/business/...estors-reports

[Beagle]

They were quite upbeat in that presentation. However they did outline the uncertainty in their section on outlook. Given covid, it will be interesting to see how much reliance could be placed on a forecast with a covid caveat.

From the report:

“OutlookFY21
• Globally, there continues to be uncertainty resulting from COVID-19, and the potential for moderation of economic activity. This could impact consumer behaviour in our core markets, as well as participants within the supply chain, most notably in China
• [B]Notwithstanding these uncertainties, overall for FY21, we anticipate continued strong revenue growth supported by our continued investment in marketing and organisational capability[/B]”

I think its going to come down to what was the main thrust of what they had to say. For what its worth i thought they had a heck of a lot to say about
BUILDING FROM STRENGTH usually in huge bolded and capital font and a very modest amount of things to say about Covid risks in standard sized font without capitals. I think you'll get my point when you read this post...if you say things in massive font there is a clear argument to say the intention behind that was to "color" or "flavor" or "cast" the annual report and presentation materials in a very positive way.

If it turns out under discovery that there were any internal communications to the contrary just before insiders sold huge volumes of shares, (very shortly after making these bullish statements), just nine days later from memory, then given the bullish overall nature of the reports I think there's a prima facie case to answer.

[jimdog31]

I think its going to come down to what was the main thrust of what they had to say. For what its worth i thought they had a heck of a lot to say about
BUILDING FROM STRENGTH usually in huge bolded and capital font and a very modest amount of things to say about Covid risks in standard sized font without capitals. I think you'll get my point when you read this post...if you say things in massive font there is a clear argument to say the intention behind that was to "color" or "flavor" or "cast" the annual report and presentation materials in a very positive way.

If it turns out under discovery that there were any internal communications to the contrary just before insiders sold huge volumes of shares, (very shortly after making these bullish statements), just nine days later from memory, then given the bullish overall nature of the reports I think there's a prima facie case to answer.

Agreed. How many have since resigned? Peter Nathan i think would have been well in the know.

[alokdhir]

So how many are contemplating to join the class action suit against ATM ?

Need to be eligible as per the guidelines .