I bought shares when A2 Milk were under investigation – do I need to join the class action or will I automatically qualify?

News in the AFR is that class action against A2 Milk. I bought shares during the period under investigation thus do I need to join this action or do you automatically qualify? Further, in these instances in reality what happens? How will shareholders be compensated if the legal firm has a win?

I assume in these exercises only the lawyers benefit!

A: You usually need to apply to join a class action. If it proceeds, I am sure the lawyer running the action will advertise on how to join, and/or get access to the share register and send shareholders a letter. Compensation (if any) will depend on the settlement amount, how many shareholders participate, usually be pro-rated according to the number of shares, and after the lawyers take their share – typically about one third. Don’t bank on it!


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