Background

Freedom Foods is engaged in sourcing, manufacturing, sale, marketing and distribution of cereal and snacks, plant and dairy based beverages and canned seafood and investment in dairy farming operations.

Deloitte was Freedom Foods’ auditor throughout the Claim Period.

The claim alleges that since 7 December 2014, Freedom Foods improperly capitalised certain expenses and failed to write off certain inventory. These accounting practices contravened accounting standards and resulted in Freedom Foods significantly overstating its financial position and performance in its annual and half yearly reports. The claim also alleges that during the Claim Period the Company’s auditor, Deloitte, signed off on the Company’s financial reports in its audit and review opinions without a reasonable basis, thereby contravening auditing standards and misleading investors.

The claim alleges that Freedom Foods’ share price was inflated by its disclosure failures and by its and Deloitte’s misleading and deceptive conduct, causing shareholders to suffer loss and damage.

Allegations

The proceeding alleges that:

1. Freedom Foods:

a. contravened its continuous disclosure obligations under section 674 of the Corporations Act 2001 (Cth) (Corporations Act) by failing to promptly inform the market regarding the Company’s financial performance during the Claim Period;

b. engaged in misleading and deceptive conduct in contravention of:

i) section 1041H of the Corporations Act;
ii) section 12DA of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act); and
iii) section 18 of the Australian Consumer Law,
with respect to statements made about the Company’s financial performance; and

c. published half year and full year financial reports which did not provide a true and fair view of its financial position.

2. Deloitte:

a. had not obtained sufficient audit evidence to provide a basis for its audit opinions in each of Freedom Foods’ half year and full year financial reports between FY14 and FY19;

b. engaged in misleading and deceptive conduct in contravention of:

i) section 1041H of the Corporations Act;
ii) section 12DA of the ASIC Act; and
iii) section 18 of the Australian Consumer Law; and

c. made false or misleading statements in contravention of section 1041E of the Corporations Act,
with respect to its audits and reviews of the Company’s financial reports.

Opt Out and Registration

The Freedom Foods Class Action is the subject of an opt out and registration process. Investors who acquired Freedom Foods securities during the Claim Period are invited to register by visiting the Omni Bridgeway registration page: https://portal.omnibridgeway.com/cases/noumi

On 28 September 2023, the Supreme Court of Victoria made orders, which amongst other things, approved a notice to be sent to relevant investors advising them of their participation rights in relation to the Freedom Foods Class Action. A copy of the orders can be accessed here and a copy of the notice can be accessed here.

Please read these documents carefully as the matters set out therein may affect your rights in relation to the Freedom Foods Class Action.

Please do not hesitate to contact Phi Finney McDonald by email at classactions@phifinneymcdonald.com or by telephone on +61 3 9134 7100 should you have any questions in relation to this class action.