Oatly has faced multiple legal challenges and lawsuits over the years, most notably a major shareholder class-action lawsuit in the United States that accused the company of greenwashing and making misleading statements about its financial health, sustainability metrics, and operational growth prior to and following its public market debut. Additionally, Oatly has been involved in extensive trademark and marketing litigation with traditional dairy industry trade groups and regulatory bodies in Europe and the United Kingdom. These legal battles frequently centered around provocative advertising slogans, such as claims comparing plant-based drinks to dairy, and disputes over whether terms resembling milk could legally be used on alternative product packaging under strict regional food labeling laws.