Oatly Group Is Maintained at Outperform by Mizuho

(18:14 GMT) Oatly Group Price Target Cut to $14.00/Share From $17.00 by DA Davidson

(20:58 GMT) Oatly Group Price Target Raised to $18.00/Share From $16.00 by Barclays

Court: S.D. New York

Case: 1:21-cv-06360

Oatly has agreed to a $9.25 million settlement with investors who accused executives of misleading them about the company’s production capacity, sustainability claims, and financial performance following its 2021 IPO.

This agreement seeks to close a turbulent chapter marked by bold promises, supply shortfalls, and serious doubts about executive leadership.

How Leadership Lapses Fueled the Crisis

Oatly’s leadership sold the dream of becoming the “Tesla of dairy.” Executives repeatedly claimed that its factories were ready to scale with surging demand, and that Oatly’s carbon footprint proved its superiority as a sustainable alternative.

However, reports later revealed production bottlenecks that left shelves empty, while critics accused Oatly of exaggerating its environmental benefits. One short-seller report put it bluntly: “Oatly is more of a marketing success than a manufacturing one.”

Investors Call Out the Storyline

Instead of warning investors about these problems, Oatly pressed on with its expansion story, raising billions in its IPO while telling the market it could transform the global dairy industry.

For a time, Oatly’s stock soared on hype and slick branding, hitting a market value of over $10 billion. But as production issues and questions about its sustainability data mounted, the truth became impossible to hide.

Analysts and short-sellers exposed inflated claims, warning that the company’s real operations didn’t match its glossy presentations.

Soon, investors filed a lawsuit against the company for being misled about the true state of Oatly’s business.

A Deal to Compensate Shareholders

Now, Oatly has agreed to a $9.25 million settlement to resolve investor claims. While the company and its executives did not admit wrongdoing, the deal gives shareholders a chance to recover part of their losses.

If you purchased , you may still be eligible to claim compensation. Even though the original deadline has passed, late claims are still being accepted. You can check eligibility and submit your claim here.