Oatly Investors Reach $9 Million Deal in ESG Metrics Fraud Suit

Oatly Group ABreached a $9.25 million deal with shareholders to end a class action lawsuit alleging that the dairy alternative company inflated sustainability and financial metrics, according to a motion for preliminary approval of the settlement.

The proposed deal would put an end to more than three years of litigation over the alleged misrepresentations highlighted in a short seller report published by Spruce Point Capital Management in 2021. Oatly and the proposed class of investors in its American Depositary Shares seek a Judge Alvin K. Hellerstein’s approval to set aside the fraud allegations, according to the Feb. 16 ...