a2 Milk Shareholder Class Action

Settlement reached for $62 million

In April 2026, the parties reached an in-principle agreement to settle the a2 Milk Shareholder Class Action for $62 million (AUD), inclusive of interest and costs. In reaching this settlement, The a2 Milk Company Limited (a2) makes no admission of liability. The settlement is subject to approval of the Supreme Court of Victoria.

Group Members who previously registered to be eligible to receive compensation were sent a Notice of Proposed Settlement between 23 and 25 August 2026. Notices are distributed by email or post. A copy of a longer form of the Notice of Proposed Settlement is also available here.

It is important that Group Members read the Notice of Proposed Settlement carefully because it may affect their legal rights. It also explains the proposed method for payments from the settlement fund and for calculating individual Group Members’ entitlements.

The class action is run jointly by Slater and Gordon and Shine Lawyers, and Shine Lawyers is administering the settlement distribution. If you have further questions, you may contact Shine Lawyers at a2MilkClassAction@shine.com.au.

Background

Slater and Gordon and Shine Lawyers are working together to conduct a group proceeding (class action) against a2 on behalf of both lead plaintiffs and all group members.

Slater and Gordon, as instructed by the Thomas lead plaintiff, commenced a group proceeding against a2 on 5 October 2021. Shine Lawyers, as instructed by the Xiao lead plaintiff, commenced a second group proceeding on 23 November 2021 in respect of the same claim period and with substantially similar allegations.  On 14 June 2022, the Court joined the two proceedings into a single Consolidated Proceeding.

Group Members

The proceeding is brought on behalf of shareholders who purchased a2 shares between 19 August 2020 and 9 May 2021 (inclusive) (acquisition claimants).

The class action also includes claims, run by Shine Lawyers, on behalf of shareholders who purchased a2 shares before 19 August 2020 and held them until after 28 September 2020 (retention claimants).

Details of the claim

Slater and Gordon has issued a claim against a2 on behalf of persons that acquired a2 securities between 19 August 2020 and 9 May 2021 inclusive (Claim Period).

On 19 August 2020, a2 released to the ASX and NZX a document entitled Results Commentary FY20 in which it stated that:

overall for FY21, it anticipated continued strong revenue growth supported by its continued investment in marketing and organisational capability; and
it expected to achieve an FY21 EBITDA margin in the order of 30% to 31%, (together, the FY21 Guidance).

The plaintiffs allege that by no later than 19 August 2020, a2 was or ought to have been aware that the FY21 Guidance and subsequent representations did not adequately take account of a number of factors which would impact a2’s financial performance.

The plaintiffs allege that, during the Claim Period:

a2 engaged in misleading or deceptive conduct in contravention of section 1041H of the Corporations Act 2001 (Cth), by providing and maintaining the FY21 Guidance and subsequent representations which lacked reasonable grounds; and
a2 contravened its obligations of continuous disclosure of price sensitive information under the Corporations Act, by failing to withdraw the FY21 Guidance and subsequent representations or to disclose the matters which affected the achievement of that guidance.

Funding and legal costs

On 20 December 2023, the Supreme Court of Victoria approved a Group Costs Order (GCO) at a rate of 24% (including GST). A GCO allows legal costs to be calculated as a percentage of the amount of any award or settlement that may be recovered in the proceeding, on the basis that Slater and Gordon and Shine Lawyers accept the risk of paying a2’s legal costs if the case is unsuccessful.

However, we can confirm that you will not be exposed to any out-of-pocket costs as a result of your participation or registration in the claim.

The Court will hold a hearing on 24 November 2026 to determine whether to approve the proposed settlement reached by the parties in April 2026. The Court will only approve the settlement if it determines that the settlement sum, and any proposed deductions for the GCO, are fair and reasonable and in the best interests of group members.

Frequently Asked Questions

Am I eligible to receive compensation?

A Registration and Opt Out Notice was distributed to group members between 21 August and 25 August 2025 by the a2 Milk Company’s share registry provider, Shine Lawyers, and Slater and Gordon Lawyers. The Notice contains important information about how group members’ legal rights may be affected by the class action.

Registration

The Supreme Court of Victoria ordered that group members were required to register by 4:00pm (AEST) on 3 October 2025 in order to be eligible to receive any compensation from any settlement reached before 2 June 2026 (which is the first day of trial). Registration is now closed.

If you registered your details and provided share trade data to Slater and Gordon or Shine Lawyers prior to the distribution of the Notice, then there was nothing further required of you. If you had not registered your details prior to receiving the Notice, then you needed to complete your registration via the online registration portal.

Opt Out

The Supreme Court of Victoria ordered that group members who wished to opt out of the proceeding were required to do so by 4:00pm (AEST) on 3 October 2025. If you chose to opt out of the proceeding, then you:

are no longer a group member;
will not be affected by any orders made in the class action and will not receive any money from the class action if it succeeds or settles; and
will retain any rights which you may have to commence your own claim against a2.

If you have opted out and wish to bring your own claim against a2, you should seek independent legal advice as a matter of urgency because there are strict time limits to commence any such claim.

Do Nothing

If you did not register or ‘opt out’ from the proceeding by 4:00pm (AEST) on 3 October 2025, you will remain a group member and remain bound by any order, judgment or settlement in the class action.

This means that you are not entitled to share in any settlement money achieved before 2 June 2026 (which was the first day of trial), including the proposed settlement reached by the parties in April 2026. If the proposed settlement is approved, you will lose your right to seek any compensation from a2 in relation to the same (or similar) claims alleged in any class action.

How do I confirm I am registered?

Group members were required to register by 4:00pm (AEST) on 3 October 2025.

The class action is run jointly by Slater and Gordon and Shine Lawyers, and Shine Lawyers is administering the settlement distribution.

If you wish to clarify your registration status, you may contact Shine Lawyers on 1800 860 433 or at a2MilkClassAction@shine.com.au.

How will the Court determine if the proposed settlement should be approved?

The Court will hold a hearing on 24 November 2026 to determine whether to approve the settlement. The Court must be satisfied that the settlement is fair, reasonable, and in the interests of the group members as a whole.

Can I still register or opt out?

The deadline to register or opt out has now passed.

If you wish to seek permission from the Court to register to participate in the settlement, by 4pm (AEST) on 22 September 2026, you must send an email to a2milkclassaction@shine.com.au which:

identifies the basis on which you consider the Court should grant you permission to participate in the proposed settlement; and
attaches evidence in support (in the form of an affidavit or statutory declaration); and
attaches any written submissions of no more than two (2) pages.

It will be a matter for the Court whether any group members who seek permission to participate in the settlement (if approved) may do so.

How can I object to the proposed settlement?

If you wish to object to the proposed settlement, you must notify the Court by 4pm (AEST) on 22 September 2026 by submitting a completed Notice of Objection available on the Supreme Court of Victoria’s website https://www.supremecourt.vic.gov.au/areas/group-proceedings/a2-milk/objection.