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 class 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,

and

by 3 October 2025, you had opted out of the Australian proceedings.

Hamilton Locke acts for Kevin Whyte, the Court-appointed representative plaintiff, and the class members in the class action proceedings against The a2 Milk Company Limited (a2 Milk) in the High Court of New Zealand (CIV 2022-404-762) (New Zealand Proceedings).

The Class

Class members in the New Zealand Proceedings purchased or held ordinary shares in a2 Milk between 19 August 2020 and 9 May 2021 inclusive (Relevant Period). The class members are investors who satisfy the eligibility criteria and who 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 (some represented by institutional investors) 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 New Zealand proceedings have been determined in the orders of Edwards J. You are a member of the New Zealand proceedings and represented by Hamilton Locke 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,

and

by 4.00 pm AEST on 3 October 2025, you had opted out of the a2 Milk class action proceedings in the Supreme Court of Victoria (No S ECI 2021 03645) (Australian Proceedings).

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.

Note: Hamilton Locke is the solicitor firm representing the plaintiffs in the New Zealand Proceedings. Thorn Law is no longer instructed by the plaintiffs.

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).

FAQs

Stay

The New Zealand Proceedings are currently stayed pending resolution of the Australian Proceedings. Upon the Australian Proceedings being resolved by way of settlement or judgment following trial, the stay of the New Zealand Proceedings will automatically lapse. At that point, the New Zealand Proceedings will be progressed expeditiously.

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 have opted out of the Australian Proceedings by this date.
13 March 2026 – mediation of the Australian Proceedings was scheduled to take place by this date.
As of 8 April 2026 – the parties to the Australian Proceedings reached an in-principle agreement to settle the Australian Proceedings for AUD$62 million, inclusive of interest and costs. In reaching this settlement, a2 Milk makes no admission of liability. The parties are continuing to negotiate a deed of settlement, and the settlement is subject to approval of the Supreme Court of Victoria.
2 June 2026 – if the current settlement negotiations in the Australian Proceedings do not result in a court-approved settlement, 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 had opted out of the Australian Proceedings by 3 October 2025.

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.

Next Steps

The plaintiffs in the Australian Proceedings and a2 Milk have engaged in settlement discussions and reached an in-principle agreement to settle the Australian Proceedings for AUD$62 million, inclusive of interest and costs. In reaching this settlement, a2 Milk makes no admission of liability.

The full settlement terms are still being negotiated and once agreed, the parties will seek the court’s approval of the settlement. The stay of the New Zealand Proceedings will be automatically lifted at that point.

In the unlikely event the Australian Proceedings do not settle, it will proceed to trial, commencing on 2 June 2026.

We will now await the determination of the Australian Proceedings (whether by settlement or at trial) before taking further steps in the New Zealand Proceedings. This approach protects New Zealand class members’ interests and avoids unnecessary duplication of costs.

We will establish a small committee of class members. The committee will provide input and instructions on behalf of the wider class. We will share further details soon.

We will continue to monitor the Australian Proceedings closely, including the court approval process of the settlement agreement. We will provide further updates as matters progress, including as to the next steps in the New Zealand Proceedings once the stay is lifted. Class members in the New Zealand Proceedings do not need to take any action at this time.

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) (ASX:A2M and (NZX:ATM), and:

a. have been included in the list of class members who have opted into the proceedings which was filed with the High Court; and

b. 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.

The process described above to join the New Zealand Proceedings differs from the process for ‘Group Members’ in the Victorian Proceedings, which is conducted on an ‘opt-out’ basis. We refer you to the Victorian Supreme Court website (here) and the High Court orders at Annexure A [133] of the Judgment here for further information.

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:
1. before September 2020: that there was a material risk that FY21 revenue would not meet the August 2020 forecast;
2. 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;
3. before January 2021: that there was a material risk that FY21 revenue would not meet the December 2020 forecast; and
4. 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. Please see Edwards J’s judgment here.
The stay of the New Zealand Proceedings will be lifted following the resolution of the Australian Proceedings.
A mediation for the Australian Proceedings was set to take place by 13 March 2026. As of 8 April 2026, the parties to the Australian Proceedings reached an in-principle agreement to settle the Australian Proceedings for AUD$62 million, inclusive of interest and costs. In reaching this settlement, a2 Milk makes no admission of liability. The parties are continuing to negotiate a deed of settlement, and the settlement is subject to approval of the Supreme Court of Victoria.
Upon the Australian Proceedings being resolved by way of settlement or trial, the stay of the New Zealand Proceedings will automatically lapse. At that point, the New Zealand Proceedings will be progressed expeditiously.
In the unlikely event that the settlement discussions do not result in a court-approved settlement agreement, the Australian Proceedings will proceed to trial on 2 June 2026.

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.

The Hamilton Locke team is led by Mihai Pascariu (New Zealand qualified partner) and Sophie Uhlhorn (Australian qualified partner).

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 have opted 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.

Please note that the deadline to register or opt out of the Australia Proceedings has now passed.

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

Partner

Mihai Pascariu