HAGENS BERMAN reminds investors of Oatly Group (OTLY) of securities fraud lawsuit and encourages investors with losses to contact the firm now
San Francisco, CA – (Newsfile Corp. – Aug 10, 2021) – Hagens Berman urges Oatly Group AB (NASDAQ: OTLY) investors with significant losses at submit your losses now. A securities fraud class action lawsuit has been filed and some investors may have some interesting claims.
Oatly Group AB (OTLY) Class action for securities fraud:
The complaint alleges that Oatly (1) inflated its gross margins, revenues and capital expenditures, (2) overestimated the proprietary nature of its formulas and manufacturing process, and (3) overstated its success in China (“PRC”).
The company’s financial metrics and sustainability claims were called into question when, on July 14, 2021, analyst Spruce Point Capital Management issued a scathing report accusing the company of a variety of potential accounting irregularities, distorting its sustainability practices and distorting its growth history in the PRC.
Among others, Spruce tip highlights “signs of revenue overvaluation,” says revenue overvaluation is verified by a key Oatly official in the United States, and highlights a discrepancy between growth in accounts receivable and growth in sales which the company says analyst suggests “an increase in revenue recognition”.
As for the sustainability practices claimed by Oatly, Spruce tip noted that the company’s production generates unsafe levels of wastewater, does not comply with EPA regulations, and sources cocoa from a company criticized for deforestation and the endangerment of species in Africa.
Spruce tip also said that Oatly had exaggerated the size of its market in the PRC and that the analyst’s investigator observed an installation in RPC that is unlikely to be operational soon.
Spruce tip asked the Oatly board of directors to hire an independent forensic accountant to investigate these matters.
In response, the price of Oatly American Depositary Shares has fallen sharply.
“We focus on investor losses and prove that the defendants misjudged Oatly’s financial measures, laundered and distorted its growth story in the PRC,” said Reed Kathrein, Hagens Berman’s partner who heads the investigation.
If you have invested in Oatly and have suffered significant losses, or have knowledge that can assist in the investigation of the company, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Those with non-public information regarding Oatly should consider their options to assist with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30% of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/92716