Oatly Group AB
Oatly Group AB (“Oatly” or the “Company”) is the world’s original and largest oatmilk company. It is organized under the laws of Sweden and held its U.S. Initial Public Offering in May 2021.
On July 14, 2021, before the market opened, short seller Spruce Point issued a Report entitled, “Sour on an Oat-lier Investment.” The 124-page Report alleged a wide array of misconduct and misstatements by Oatly, including that it wrongfully overstated its revenue, gross margin, accounting, and capital expenditure metrics; the proprietary nature of its production process and formula; and its growth story in China, among other things. A number of news outlets reported on the Spruce Point Report over the following days.
On this news, the price of Oatly ADSs fell 7.8% over two days, from a close price of $21.13 on July 13, 2021, to a close price of $19.48 on July 15, 2021, on unusually high trading volume.
A securities class action has been filed against Oatly on behalf of shareholders that purchased Oatly shares in connection with the Company’s IPO on May 20, 2021. This case has been filed in the U.S. District Court for the Southern District of New York.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (a) overinflated its gross margins, revenue, and capital expenditure financial metrics; (b) overstated the proprietary nature of its formulas and manufacturing process; (c) exaggerated its success in China; and (d) as a result of the foregoing, Oatly’s statements about its operations, business, and prospects were misleading during the Class Period.
If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.