SAN FRANCISCO, CA / ACCESSWIRE / September 19, 2021 / Hagens Berman urges Oatly Group AB (NASDAQ:OTLY) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Class Period: May 20, 2021 - July 15, 2021
Lead Plaintiff Deadline: Sept. 24, 2021
Contact An Attorney Now: [email protected]
Oatly Group AB (OTLY) Securities Fraud Class Action:
The complaint alleges Oatly (1) inflated its gross margins, revenue, and capital expenditure financial metrics, (2) overstated the proprietary nature of its formulas and manufacturing process, and (3) exaggerated its success in China ("PRC").
The company's financial metrics and sustainability claims were brought into question when, on July 14, 2021, analyst Spruce Point Capital Management published a scathing report accusing the company of a variety of potential accounting improprieties, misrepresenting its sustainability practices, and misrepresenting its PRC growth story.
Among other things, Spruce Point highlights "signs of revenue overstatement," claims revenue overstatement is verified by a key Oatly U.S manager, and points to a divergence between accounts receivable growth and sales growth that the analyst says suggests "a pull forward of revenue recognition."
As to Oatly's claimed sustainability practices, Spruce Point noted the company's production generates dangerous levels of wastewater, it is out of compliance with EPA regulations, and it sources cocoa from a company criticized for deforestation and endangerment of species in Africa.
Spruce Point also said Oatly has exaggerated the size of its PRC market and the analyst's investigator observed a PRC facility that is unlikely to be operational soon.
Spruce Point called for Oatly's board of directors to hire an independent forensic accountant to investigate such matters.
In response, the price of Oatly American Depositary Shares fell sharply lower.
"We're focused on investors' losses and proving defendants misstated Oatly's financial metrics, greenwashed, and misrepresented its PRC growth story," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Oatly and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Oatly should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP