Murray Goulburn has agreed to settle a court case brought by the competition watchdog over allegations the dairy co-operative misled farmers about how much they would be paid for their milk.
In a statement to the Australian Stock Exchange, Murray Goulburn said it had agreed to a settlement in principle with the Australian Competition and Consumer Commission.
It said the ACCC would seek declarations that MG and former managing director Gary Helou contravened Australian consumer law in the period February 29, 2016, to April 27, 2016, with statements made about the farmgate milk price.
MG said the ACCC would seek a pecuniary penalty against Mr Helou but not against the company itself.
Under the settlement, both MG and Mr Helou would admit to the contraventions and agree to costs orders against them.
“Murray Goulburn is pleased to have reached an agreement with the ACCC on this matter," Murray Goulburn chairman John Spark said.
An ACCC spokesperson said the Federal Court had made orders for the filing of a statement of agreed facts and joint submissions on relief.
These would be heard on December 6.
"As the proceedings against Murray Goulburn and Mr Gary Helou remain before the Federal Court, the ACCC is unable to comment further," the spokesperson said.