Noumi Limited has received Victorian Supreme Court approval for its $43 million class action settlement, closing a significant chapter tied to past financial restatements. The company’s insurer will cover its $11.56 million contribution, while legal costs will impact FY25 results.
- Victorian Supreme Court approves $43 million class action settlement
- Noumi’s $11.56 million share fully covered by insurers
- Approximately $4.6 million in legal and professional costs to be reported in FY25
- Settlement resolves legacy financial restatement issues from FY19 and FY20
- Company leadership to focus on growth post-settlement
Court Approval Brings Closure to Legacy Issues
Noumi Limited (ASX – NOU) has announced that the Victorian Supreme Court has formally approved the terms of a class action settlement, bringing to a close a protracted legal matter linked to the company’s financial restatements in 2019 and 2020. This settlement, originally reached in October 2024, involves a total payout of $43 million, with Noumi’s portion amounting to $11.56 million.
Importantly for investors, Noumi’s contribution will be fully met by its insurers, shielding the company’s balance sheet from direct settlement costs. However, Noumi will still incur approximately $4.6 million in legal and professional fees associated with resolving these legacy issues, which are expected to be reflected in the company’s FY25 financial results.
Impact on Company Strategy and Investor Confidence
Chair Genevieve Gregor emphasised that the court’s approval marks the end of the last material legacy issue stemming from the events that necessitated the restatement of Noumi’s financial statements. This resolution is a pivotal moment, allowing the board and management to redirect their full attention towards business growth and enhancing long-term stakeholder value.
Noumi operates in the fast-moving consumer goods sector, specialising in dairy and plant-based beverages and nutritional products. The company’s portfolio includes well-known brands such as MILKLAB, Australia’s Own, and So Natural. With the legal cloud now lifted, Noumi is positioned to focus on innovation and market expansion without the distraction of legacy legal uncertainties.
Looking Ahead – Financial Reporting and Market Implications
While the insurer coverage mitigates immediate financial risk, the legal and professional costs will weigh on FY25 earnings. Investors will be keen to see how these expenses are managed alongside Noumi’s operational performance. The settlement also underscores the importance of robust corporate governance and transparency, lessons that Noumi appears to have taken to heart as it moves forward.
Representation by Arnold Bloch Leibler throughout the proceedings highlights the company’s commitment to a thorough and professional resolution. As Noumi turns the page on this chapter, market watchers will be attentive to how the company leverages this fresh start to drive growth and shareholder value.
Bottom Line?
With legacy legal issues behind it, Noumi’s next challenge is translating this fresh start into sustainable growth.
Questions in the middle?
- How will the $4.6 million in legal costs affect Noumi’s FY25 profitability and cash flow?
- What strategic initiatives will Noumi pursue now that legacy issues are resolved?
- Could insurer involvement signal any contingent liabilities or future claims?