Oatly faced legal action from investors through class-action lawsuits that alleged misleading disclosures regarding financial projections and greenwashing claims related to its corporate sustainability profile. Additionally, the company has been targeted in various international legal jurisdictions by traditional dairy industry associations over marketing language, trademark registrations, and descriptive terms used on product packaging. These lawsuits frequently address complex regulatory boundaries concerning whether plant-based beverage makers can use terminology traditionally reserved for dairy products.