The judge has stayed A2 Milk’s case until the Australian case is resolved.

A2 Milk has successfully stayed a local class action lawsuit for alleged misleading and deceptive conduct and violations of stock exchange rules regarding continuous disclosure.

The High Court ruled that hearings in New Zealand should be stayed pending resolution of a similar case in Australia regarding the same statement.

Judge Edwards’ ruling has just been announced, and she said Australian courts have jurisdiction to decide the dispute and are the more appropriate courts to decide the matter.

“The existence of substantially similar procedures in Australia tip the balance in favor of stay,” the ruling said.

“Given the alternatives open to shareholders, intervention in access to jurisdiction is minimal. Savings in time, costs and resources will allow the New Zealand litigation pending a decision or settlement of the Australian litigation. can be temporarily suspended.”

However, she also ruled that she could start an opt-in class action lawsuit led by A2 shareholder Kevin Whyte.

A2 Milk is facing two class action lawsuits in Victoria from shareholders disgruntled by a series of earnings downgrades in late 2020 and early 2021. The company said this was due to his Covid-related sales decline in China, the company’s main market.

The company’s stock has fallen about 70%.

A2 Milk denies any liability and states: it will vigorously defend the lawsuit.