Embattled dairy co-operative Murray Goulburn and its directors are being sued for allegedly misleading investors when the dairy producer partially floated on the share market in mid-2015.
The unit price in the MG Unit Trust has more than halved after Murray Goulburn in late April announced a profit downgrade and a big cut to the price it pays farmers for their milk.
The profit downgrade and the cut to the farmgate milk price has prompted Elcar Super Fund trustee John Webster to launch legal action on behalf of all people who invested in the MG Unit Trust.
The lawsuit, lodged with the Victorian Supreme Court on Monday, alleges Murray Goulburn made "misleading or deceptive statements" about its revenues and expected income in the MG Unit Trust's product disclosure statement.
Murray Goulburn said on Monday that it had not yet been served with the legal papers in relation to Mr Webster's lawsuit.
"However, regardless we do not consider that we have any issues with our continuous disclosure or the information contained in the product disclosure statement," a Murray Goulburn spokesperson said.
Murray Goulburn has 21 days to respond to the writ.
On April 27, Murray Goulburn downgraded its annual profit forecast to between $39 million and $42 million.
That was down from its February forecast of $63 million and well under its prospectus forecast of $86 million.
Murray Goulburn also said the price it pays farmers for milk solids would be cut from $5.60 a kilogram to between $4.75 and $5.00
The dairy producer blamed a slump in global prices - down about 60 per cent since early 2014 - for the decision.
Three directors have quit the Murray Goulburn board since the April 27 announcement, which also cost the jobs of Murray Goulburn managing director Gary Helou and chief financial officer Brad Hingle.
Murray Goulburn is also under threat of another class action in relation to the profit downgrade and the consequent plunge in the value of units in the MG Unit Trust.
Just days after the April 27 announcement, law firm Slater and Gordon and litigation funder IMF Bentham said they were weighing legal action against Murray Goulburn.
Slater and Gordon and IMF are investigating whether Murray Goulburn misled investors and failed in its continuous disclosure obligations.
Murray Goulburn said in response to the threat of that class action that it was very comfortable with its processes and did not consider that it has any issues with its continuous disclosure.
Units in MG Unit Trust were 1.5 cents lower at 95.5 cents on Monday.
