Australian dairy cooperative Murray Goulburn has revealed that its agreed settlement in relation to an investigation into milk prices will entail it paying a penalty of AUD650,000 (US$498,459).

It was announced last month that the cooperative – recently acquired by Canada’s Saputo for US$1bn – had settled with the country’s corporate watchdog – the Australian Securities and Investments Commission (ASIC) – over claims the Devondale owner misled farmers about the price the business would pay for milk.

It said then the settlement was subject to Federal Court of Australia approval.

Now, in a statement, Murray Goulburn has said the Federal Court has made a declaration in the terms sought by ASIC and Murray Goulburn
and has imposed the agreed penalty.

Murray Goulburn said in the statement that it was not alleged by ASIC that it deliberately contravened its continuous disclosure obligations.

ASIC’s investigation was into the co-op’s conduct before it announced a cut to its forecast milk payments in April 2016.