Electrical Workers Pension Fund, Local 103, I.B.E.W. v. The Chemours Company
|Court:||United States District Court for the District of Delaware|
|Judge:||Hon. Colm F. Connolly|
|Case Contacts:||Hannah Ross, Avi Josefson, Michael D. Blatchley, Gregory V. Varallo|
This is a securities class action lawsuit against The Chemours Company (“Chemours” or the “Company”) (NYSE: CC) and certain of the Company’s senior executives (collectively, “Defendants”). The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all purchasers of Chemours common stock between February 16, 2017 and August 1, 2019, inclusive (the “Class Period”).
Chemours is a spin-off of the Performance Chemicals division of industrial conglomerate E.I. du Pont de Nemours and Company (“DuPont”) which began trading as its own public company in 2015. The spin-off was completed pursuant to a Separation Agreement that required Chemours to indemnify DuPont for historic environmental liabilities. The action arises from Defendants’ misrepresentations and omissions relating to Chemours’ statements and accruals for environmental liabilities arising from its decades-long production, use, and discharge of chemicals manufactured by the Performance Chemicals division, including perfluoroalkyl and polyfluoroalkyl substances (“PFAS”)—toxic chemicals that have become the basis for environmental regulatory actions, prosecutions, personal injury lawsuits, and extensive remediation efforts.
The Complaint alleges that, throughout the Class Period, Defendants misled investors by representing that Chemours had appropriately accounted and accrued reserves for its environmental liabilities, that the possibility of costs exceeding accrued amounts was “remote,” and that, in any event, additional costs would not be material. Chemours also assured investors that its “policies, standards and procedures are properly designed to prevent unreasonable risk of harm to people and the environment,” and that its “handling, manufacture, use and disposal of hazardous substances are in accordance with applicable environmental laws and regulations.” As a result of these misrepresentations, Chemours shares traded at artificially inflated prices throughout the Class Period.
A series of disclosures beginning on May 6, 2019 and culminating on August 1, 2019 revealed the truth about the Company’s environmental practices, and that Chemours’ liabilities were far greater than the Company had represented. These disclosures included the June 28, 2019 unsealing of a complaint Chemours had filed under seal against DuPont on May 13, 2019, in which Chemours made detailed allegations that its spin-off from DuPont was part a deliberate plan by DuPont to rid itself of significant exposures incurred through decades of PFAS discharge and to unload that responsibility onto Chemours. These disclosures triggered sharp declines in the price of Chemours stock, which lost half its value during this time frame, with Chemours shares falling from $34.18 per share on May 3, 2019 to close at $14.69 per share on August 2, 2019.
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than December 9, 2019, which is the first business day on which the U.S. District Court for the District of Delaware is open that is 60 days after the publication date of October 9, 2019. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice. Members may also choose to do nothing and remain part of the proposed Class.
Click here to view the Complaint.
Bernstein Litowitz filed this action on behalf of its client the Electrical Workers Pension Fund, Local 103 I.B.E.W. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Michael D. Blatchley of BLB&G at 212-554-1281, or via e-mail at firstname.lastname@example.org.
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