a2 Milk New Zealand Class Action
There are class actions against The a2 Milk Company Limited in Victoria (Australia) and New Zealand. You are a member of the New Zealand proceedings if prior to 23 July 2023 you opted in by executing:
a litigation funding agreement with CHC Investment Fund III Pty Ltd as trustee for CHC Investment Fund III; and
a retainer with Thorn Law.
If you completed these steps above, the High Court of New Zealand requires you to opt out of the Australian Proceedings on or before 3 October 2025 by following this link.
Hamilton Locke acts for Kevin Whyte, the Court-appointed representative plaintiff, in the class action proceedings against The a2 Milk Company Limited (a2 Milk) in the High Court of New Zealand (New Zealand Proceedings).
The Class
You may be a class member in the New Zealand Proceedings if you purchased or held ordinary shares in a2 Milk between 19 August 2020 and 9 May 2021, inclusive (Relevant Period). Investors who satisfy the eligibility criteria may be entitled to compensation for losses suffered as a consequence of a2 Milk’s alleged misconduct, outlined below.
In the High Court of New Zealand, her Honour Justice Edwards granted leave for the New Zealand Proceedings to be commenced as an opt-in representative action on behalf of class members. See the High Court orders at Annexure A [133] of the Judgment here. A list of more than 3,000 class members who opted in to the New Zealand Proceedings prior to the deadline of 23 July 2023 was filed with the High Court.
The class members in the NZ proceeding have been determined in the orders of Edwards J. You are a member of the New Zealand proceedings if prior to 23 July 2023 you opted in by executing:
- a litigation funding agreement with CHC Investment Fund III Pty Ltd as trustee for CHC Investment Fund III (CHC); and
- a retainer with Thorn Law.
To remain as a class member in the New Zealand Proceedings, you must opt-out of the a2 Milk class action proceedings in the Supreme Court of Victoria (Australian Proceedings) before 4pm AEST on 3 October 2025. Instructions on how to do so are available here.
If you have not opted into the New Zealand Proceedings but consider that you are eligible to join and wish to do so, please contact us.
The Claim
Mr Whyte alleges that between 19 August 2020 and 9 May 2021, a2 Milk:
- made misleading or deceptive statements about the forecasted financial performance of a2 Milk;
- failed to comply with its continuous disclosure obligations under New Zealand law; and
- accordingly, breached provisions of the Financial Markets Conduct Act 2013 (NZ), the Financial Markets Conduct Regulations 2014 (NZ) and the Fair Trading Act 1986 (NZ).
Latest updates
- 19 August 2020 – a2 Milk publishes its FY20 results and issues forecast for FY21.
- 28 September 2020 – a2 Milk publishes its updated FY21 market release.
- 18 December 2020 – a2 Milk publishes its updated 1H21 and FY21 guidance market release.
- 25 February 2021 – a2 Milk publishes its FY21 half yearly report and accounts and updated and reduced revenue forecasts.
- 10 May 2021 – a2 Milk publishes a trading update and revised FY21 outlook.
- 5 October 2021 – Mr Jake Thomas commences proceedings in the Supreme Court of Victoria against a2 Milk (Thomas Proceedings).
- 23 October 2021 – Mr Yue Xiao commences proceedings in the Supreme Court of Victoria against a2 Milk (Xiao Proceedings).
- 16 May 2022 – Mr Whyte commences the New Zealand Proceedings in the High Court of New Zealand at Auckland against a2 Milk.
- 15 June 2022 – the Thomas Proceedings and Xiao Proceedings are consolidated into a single proceeding (Australian Proceedings).
- 23 January 2023 – the New Zealand Proceedings are stayed pending resolution of the Australian Proceedings.
- 3 October 2025 – New Zealand class action class members must opt out of the Australian Proceedings.
- 13 March 2026 – mediation of the Australian Proceedings is scheduled to take place by this date.
- 2 June 2026 – if mediation of the Australian Proceedings is unsuccessful, trial of the Australian Proceedings will commence on this date.
The New Zealand Proceedings
You cannot be a class member of both the New Zealand Proceedings and the Australian Proceedings. For eligible class members:
- You must have opted in to the New Zealand Proceedings by executing a litigation funding agreement with CHC and a retainer with Thorn Law to be a class member.
- You will remain a class member of the New Zealand Proceedings only if you opt out of the Australian Proceedings.
Although based on the same facts and events, legally, procedurally and financially, the New Zealand Proceedings differ from the Australian Proceedings, as summarised below:
Further details comparing the Australian Proceedings and New Zealand Proceedings are available at the following link.
Frequently Asked Questions
Am I a Class Member to the New Zealand Proceedings?
To participate as a class member to the New Zealand Proceedings you must have held an interest in ordinary shares in The A2 Milk Company Limited in the Relevant Period acquired on either the New Zealand Stock Exchange (NZX) or Australian Stock Exchange (ASX) (A2X:A2M and (NZX:ATM), and:
- have been included in the list of class members who have opted into the proceedings which was filed with the High Court; and
- opted out of the Australian Proceedings by following the process set out on the Victorian Supreme Court website (here).
If you have not yet opted in to the New Zealand Proceedings but consider that you are eligible to join and wish to do so, please contact us.
What is it alleged that a2 Milk have done?
- Both the Australian Proceedings and New Zealand Proceedings allege that between 19 August 2020 and 9 May 2021 (being the Relevant Period), a2 Milk engaged in false and misleading conduct and breached its obligations under respective Australian and New Zealand laws of continuous disclosure.
- It is alleged that a2 Milk made and disseminated financial forecasts to the NZX and ASX that were materially misleading or false, or for which a2 Milk did not have reasonable grounds.
- At each time a financial forecast was made, a2 Milk did not have reasonable grounds for to make the statements due to known or knowable adverse information about inventory, sales channels, and declining revenues. These forecasts were likely to induce trading in a2 Milk shares or maintain/inflate the share price.
- Prior to 19 August 2020, a significant portion of a2 Milk’s sales to China occurred through the daigou channel (Daigou) and cross-border e-commerce (CBEC).
- In early 2020, the COVID-19 pandemic led to border closures in Australia and New Zealand, severely disrupting the Daigou channel of commerce. The pandemic also caused a sharp decline in demand and excess inventory in China. These disruptions led to a material negative impact on a2 Milk’s sales volumes, pricing and inventory levels, particularly in the Chinese segment.
- Despite forecasts gradually revising a2 Milk’s actual financial position during the Relevant Period, these forecasts failed to disclose the full extent of inventory and sales channel issues.
- By failing to fully disclose the actual financial position of a2 Milk, and failing to promptly correct or withdraw those forecasts when it became apparent they were unlikely to be met, it is alleged that a2 Milk engaged in misleading or deceptive conduct.
- As an issuer of securities listed on the NZX and ASX, it is alleged that a2 Milk breached its continuous disclosure obligations by failing to promptly disclose material information to the market as required by the NZX and ASX listing rules. Specifically, it is alleged that a2 Milk failed to promptly disclose the following information:
- before September 2020: that there was a material risk that FY21 revenue would not meet the August 2020 forecast;
- before October 2020: that there was excess inventory of English Label Products in the Australian/New Zealand and Chinese markets, and the risk of needing to recognise a stock provision, and that there was a material risk that FY21 revenue would not meet the September 2020 forecast;
- before January 2021: that there was a material risk that FY21 revenue would not meet the December 2020 forecast; and
- before March 2021: that there was a material risk that FY21 revenue would not meet the February 2021 forecast.
- Whilst a2 Milk eventually disclosed the above, it is alleged that the eventual disclosures were belated and only occurred after the market had already been misled by the earlier forecasts.
Why are the New Zealand Proceedings stayed?
- The New Zealand Proceedings were stayed on 23 January 2023, pursuant to an application by a2 Milk on the grounds that the Australian Proceedings and New Zealand Proceedings were substantially identical.
- Edwards J found that if the New Zealand Proceedings were to progress alongside the Australian Proceedings, this would result in unnecessary duplication, increased costs, risk of inconsistent judgments, and the inefficient use of judicial resources.
- The stay of the New Zealand Proceedings will be lifted following the resolution of the Australian Proceedings.
- A mediation for the Australian Proceedings is set to take place before 13 March 2026. If this mediation is unsuccessful, the Australian Proceedings will proceed to trial on 2 June 2025.
- Upon the Australian Proceedings being resolved by mediation or trial, the New Zealand Proceedings will recommence.
How much have investors lost as a result of a2 Milk’s conduct?
During the Relevant Period, a2 Milk made a series of public forecasts and statements regarding its expected revenue and EBTIDA margins for FY21. The company’s share price was highly sensitive to these forecasts, with significant declines following each downward revision or correction. From August 2020 to August 2021, a2 Milk’s share price fell from NZD$21.74 to $6.02.
Total quantum of investors’ losses is being calculated, as it varies according to the time of investment in a2 Milk. More information will be provided in due course.
How much might I recover if these proceedings are successful?
The amount that shareholders (i.e. class members) may recover will be subject to their individual circumstances during the Relevant Period. Generally speaking, the maximum amount a class member in the New Zealand Proceedings who bought a2 Milk shares in the Relevant Period may expect to recover will be the difference between the price they actually paid, and the true value of the shares had there been no misleading conduct.
Do I have to pay lawyers to participate in these proceedings?
No, participants to the New Zealand Proceedings will not be required to pay the plaintiff-appointed lawyers, Hamilton Locke. The New Zealand Proceedings are funded by CHC Investment Fund III Pty Ltd as trustee for CHC Investment Fund III (CHC). CHC has entered into a litigation funding agreement with Mr Whyte and each class member. Hamilton Locke’s fees are paid by CHC.
What am I liable for if I participate in these proceedings?
Participants to the New Zealand Proceedings will not be exposed to any costs or financial risk.
Can I participate in the Australian Proceedings and the New Zealand Proceedings?
No. You cannot be a class member in both class actions. As a precondition to participate as a class member in the New Zealand Proceedings, a2 Milk shareholders must opt out of the Australian Proceedings on or before 3 October 2025. This is because courts will not allow “double recovery”. If you remain in both, you risk being excluded from any settlement or judgment in either forum.
To opt out of the Australian Proceedings, please access the Victorian Supreme Court’s website page dedicated to the A2 Milk Class Action (link) and follow the instructions.
Who can I contact for more information?
We welcome your queries by email to a2milknzclassaction@hamiltonlocke.co.nz.
What happens if the Australian Proceedings settles first?
If a2 Milk settles with the plaintiffs bringing the Australian Proceedings or is found liable by the Victorian Supreme Court, we intend to leverage that outcome to accelerate resolution in New Zealand. The funding commission will be capped at 15 % provided settlement in New Zealand occurs within six months of the Victorian outcome.
Will I need to attend mediation?
It is unlikely that you, as a class member of the New Zealand Proceedings, would need to attend any mediation of the New Zealand Proceedings. Participation is passive; the legal team representing the class members will take instructions from the class members, conduct the mediation and inform you of any outcome.
Get in touch
Sophie Uhlhorn
