FONTERRA Australia will face the Supreme Court, with a class action being launched against the dairy giant.
Compensation is being sought for the sudden price reduction and claw back announced on May 5, 2016 when Fonterra unilaterally reduced the milk prices for some farmers by around 70 per cent.
The case filed last Wednesday is for dairy farmers who Fonterra purchased milk from in 2015/2016.
It will be run by lawfirms Adley Burstyner and Harwood Andrews, a 175 year old firm with strong rural and regional presence.
The case will utilise information generated by the Australian Competition and Consumer Commission (ACCC) investigations.
The defendants are three Australian companies which are part of the global dairy conglomerate headed by Fonterra Co-Operative Group Limited, whose performance can be invested in via the Fonterra Shareholders Fund (ASX:FSF).
This is the first time that a court has been asked to evaluate Fonterra’s conduct and deliver compensation to the pool of 2015/2016 dairy farmers.
David Burstyner, the lawyer running the case, said “I’ve looked at the contracts and I’ve listened to farmers and seen 10 months of Fonterra statements saying, with very limited exception, that the $5.60 price will be paid”.
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