Sign In
OTLY.US
id: 1109

Oatly (OTLY) Financial Mirepresentation and China Growth Issues Settlement

S.D. New York
Court
1:21-cv-06360
Case number
20 May 2021
Class period Start
15 Nov 2021
Class period End
Oatly (OTLY) agreed to settle $9.25M with shareholders to end claims over exaggerating uniqueness and China success.

Case Details:

On July 14, 2021, Spruce Point Capital Management releases report titled "Sour on an Oat-lier Investment" alleging misconduct by Oatly.
  • Report claims Oatly overstated revenue, margins, and growth in China, among other things.
Following the news, $OTLY dropped by 7.8% on July 15, 2021.

According to Bloomberg, on July 14, 2021, Oatly responded to false claims by a short seller, causing a 3% drop in their shares.

Based on these events, Oatly was accused of the following details:
  • Oatly overstated the proprietary nature of formulas and manufacturing processes, and exaggerated success in China.
Oatly has now decided to end all the allegations related to this case and pay a $9.25M settlement to investors.


Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
26 July 2021
Plaintiffs
Kai Jochims
Attorneys
Robbins Geller Rudman & Dowd LLP, Scott + Scott Attorneys at Law LLP
Defendants
Toni Petersson, Christian Hanke, Steven Chu, Ann Chung, Bernard Hours, Hannah Jones, Mattias Klintemar, Po Sing (Tomakin) Lai, Eric Melloul, Bjorn Oste, Frances Rathke, Yawen Wu, Tim Zhang, Fredrik Berg
Judge
Alvin K. Hellerstein
Attorney fee
$9,250,000
Trades matching type
FIFO
+$9,250,000
Total Settlement Amount

Frequently Asked Questions

Oatly Group AB ADR

Oatly Group AB, an oatmilk company, provides a range of plant-based dairy products made from oats in Europe, the Middle East, Africa, the Americas, and Asia. It offers Barista edition oatmilk, oatg...

    Ticker
    OTLY.US
    ISIN
    US67421J1088
    CIK
    1843586
    Sector
    Consumer Defensive
    Industry
    Beverages - Non-Alcoholic
    Country
    USA
    Address
    Ångfärjekajen 8, Malmö, Sweden, 211 19