“Given this position, coupled with the time and money we had already invested, there was little choice but to take the matter to court, which we did in March 2021. “
Noumi said Sunday Collab’s claims are “without merit” and the loss of profits claims are “totally unsupportable”, and will defend the action.
“Noumi also considers that Sunday Collab’s alleged loss quantum is ill-conceived and will not succeed, particularly given that: Sunday Collab has provided little or no demonstrable relevant prior distribution experience in relation to dairy or herbal; the highly competitive nature of the market in Europe; and the significant disruptions caused by COVID-19 and broader economic challenges that have affected and continue to affect supply chains and distribution networks.
Noumi Obtains Funds to Reimburse Blue Diamond Settlement
The Sunday Collab lawsuit is the latest in a series of legal battles Noumi is embroiled in, including two class action lawsuits (which have been merged into one proceeding), a countersuit from former auditor Deloitte and a settlement with the American almond grower Blue Diamond that he is now one step closer to resolution.
At an extraordinary general meeting on Wednesday morning, the overwhelming majority of Noumi shareholders approved the company’s plan to sell its 9.4% stake in Australian Fresh Milk Holdings (AFMH) for $1.45 per share. , or $29.6 million to repay the outstanding amount owed to American almond grower Blue Diamond.
“Approximately $25 million of the sale proceeds will be applied to Noumi’s obligations under the settlement agreement…the balance of $4.65 million to be used for general purposes, including related expenses to the transaction,” said Noumi President Geneviève Gregor.
Noumi shares fell more than 5%.
The dispute with Blue Diamond began in January 2020 over unpaid invoices. This escalated in September of that year when Blue Diamond sued for fraud and breach of its license agreement by manufacturing nut-based drinks, including Milklab and another brand, Australia’s Own.
Noumi (then known as Freedom Foods) responded by filing its own lawsuit against Blue Diamond, arguing that it had not violated their license agreement, that Blue Diamond had engaged in misleading and deceptive conduct and was not acting in good faith.
The case was finally settled in January 2022 by US arbitration, after the full Federal Court blocked Noumi’s attempt to have the case dismissed by the courts.
Beginning September 1, 2022, Noumi will pay the $18 million ($25.7 million) due in quarterly installments of $1.125 million over four years.
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