Law firms are flocking to investigate Bellamy’s Organic over a potential breach of its disclosure obligations as a publicly listed company.
The dairy company, which has seen its sales and share price soar in the past year, possibly knew or ought to have known about the expected impact of regulatory changes in China, according to law firm Maurice Blackburn, which is calling for shareholders to register their interest in a class action.
Slater & Gordon and IMF Bentham, meanwhile, have also announced they are teaming up to investigate whether investors were sufficiently informed about the risks and challenges Bellamy's was facing.
Bellamy's share price recently plunged after it announced a sales slowdown due to lower than anticipated trade on Singles Day, and the impact of regulatory changes to the online sales channel in China.
Earlier this week, Bellamy’s requested a trading halt ahead of the release of new financial forecasts, and then on Wednesday, the company entered a voluntary suspension from trade which is likely to last until 21 December.
