The Chemours Company (NYSE: CC)
A class action has been filed in the United States District Court for the District of Delaware on behalf of purchasers of The Chemours Company (NYSE: CC) securities during the period between February 16, 2017 and August 1, 2019, (the “Class Period”).
In July 2015, Chemours became public via a spinoff of the Performance Chemicals division of E.I. du Pont de Nemours and Company (“DuPont”).
On May 6, 2019, Glenview Capital Management’s Larry Robbins stated that Chemours faced “4 to $6 billion” in environmental liabilities, which is “60 to 100% of its market [capitalization].”
On this news, the Company’s share price fell $2.57 per share, or over 7%, to close at $31.61 per share on May 6, 2019, thereby injuring investors.
Then, on June 28, 2019, a complaint filed by Chemours against DuPont was unsealed, which alleged that DuPont sought to “shift as much liability onto Chemours as possible – and, at the same time, to extract for DuPont a multi-billion-dollar dividend payment from the new company.” This complaint also revealed that Chemours faced over $2.5 billion in environmental liabilities.
On this news, the Company’s share price fell $2.37, or nearly 10%, to close at $22.53 per share on July 1, 2019, thereby injuring investors further.
Then, on August 1, 2019, the Company announced its second quarter 2019 financial results and disclosed significant increases to its estimated environmental liabilities, including many new legal and regulatory actions related to perfluoroalkyl and polyfluoroalkyl substances (“PFAS”).
On this news, the Company’s share price fell $3.47, or over 19%, to close at $14.69 per share on August 2, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Chemours had estimated that costs of remediation and abatement for PFAS contamination were in excess of $200 million without including the significant potential costs to resolve outstanding or future litigation; (2) that Chemours was aware of the harmful effects of PFAS and the tort liability that could arise from the decades of emissions; (3) that the solutions Chemours began implementing in 2018 were the “very same abatement technology that DuPont previously declined to install in 2013”; (4) that Chemours severely understated the Company’s environmental liabilities; (5) that it was nearly certain that the liabilities would be greater than accrued amounts; and (6) that as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you are a current shareholder and/or purchased stock during the period between February 16, 2017 and August 1, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.