NEW YORK, Aug. 01, 2021 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Oatly Group AB (“Oatly” or the “Company”) (NASDAQ:OTLY) and reminds investors of the September 24, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you suffered losses exceeding $50,000 investing in Oatly stock or options between May 20, 2021 and July 15, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/OTLY.

There is no cost or obligation to you.

Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.

As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that Oatly: (1) overinflated its gross margins, revenue, capital expenditure, and market share financial metrics; (2) overstated its sustainability practices and impact; (3) exaggerated its growth in China; and (4) as a result of the foregoing, Oatly’s statements about its operations, business, and prospects were misleading during the Class Period.

Specifically, 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 detailed a wide array of misconduct and misstatements by Oatly, including that it has wrongfully overstated: a number of its financial metrics including revenue, gross margin, capital expenditures, and market share; its sustainability practices and impact; and its growth story in China, among other things. The Report was based on a review of Oatly’s financial and other statements as well as interviews with former employees and other investigative work like site visits.

According to the Report, Oatly’s revenue metrics are “insufficient and not what we expect from a company with a 20-year operational history.” For example, the Registration Statement did not disclose new sales for new products over the previous 36 months. In addition, “[d]iscounts, rebates and coupons are deducted from gross to reported net revenues. Oatly doesn’t provide a bridge so investors can gauge promotional activity[.]”

As to sales, the Report points out that, “Oatly’s 2018 U.S. sales can’t be reconciled and vary by 100%. Both Nielsen and a Swedish magazine reported $6m of sales in 2018, whereas Oatly [] disclosed $12m of sales in [the] [I]nvestor [P]resentation.”

On this and other similar news, the price of Oatly ADSs fell 2.8%, closing at $20.54, down from its previous close of $21.13, a drop of 2.8%.

On July 15, 2021, there was more coverage of the Report by news outlets. For example, at 10:15 a.m., Fortune published an article entitled, “Wild Oats? Inside Spruce Point’s 124-Page Attack Alleging Mismanagement And False Claims At Oatly.” Fortune described the Report as “the results of an extensive investigation into Oatly[.]”

On this news, the price of Oatly ADSs fell another 5.16% on July 15, closing at $19.48 per ADS. Together with the July 14 drop, this was a two-day decline of 8.8%, with both days experiencing unusually high trading volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.  

Faruqi & Faruqi, LLP also encourages anyone with information regarding Oatly’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.