SAN FRANCISCO, CA – (October 25, 2019) – The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces announces that securities fraud class action litigation has been filed on behalf of investors who purchased or otherwise acquired the common stock of The Chemours Company (“Chemours” or the “Company”) (NYSE: CC) between February 16, 2017 and August 1, 2019, inclusive (the “Class Period”).
If you purchased or otherwise acquired the common stock of Chemours during the Class Period, you may move the Court for appointment as lead plaintiff by no later than December 9, 2019. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Chemours investors may contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358 to learn more about the litigation and how to seek appointment as lead plaintiff.
Background on The Chemours Securities Class Litigation
Chemours, incorporated and headquartered in Wilmington, Delaware, is a spin-off of the E.I. du Pont de Nemours and Company (“DuPont”) and produces a wide range of industrial and specialty chemicals products for various markets. Chemours’s stock began trading as publicly traded company in 2015. The spin-off was completed pursuant to a Separation Agreement that required Chemours to indemnify DuPont for historic environmental liabilities, including those related to perfluoroalkyl and polyfluoroalkyl substances (“PFAS”), toxic chemicals that have since become the basis for environment regulatory actions, governmental prosecutions, personal injury lawsuits, and extensive remediation and other clean-up efforts.
The complaint alleges that Chemours misled investors by misrepresenting that it had correctly accounted and accumulated reserves for its environmental liabilities, that the likelihood of costs exceeding accrued amounts was “remote,” and that, in any event, added costs would not be material. Chemours also guaranteed investors that its “policies, standards and procedures are properly designed to avoid 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.
On June 28, 2019, the Delaware Chancery Court unsealed a complaint that Chemours had filed against Dupont alleging 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. Following this news, the price of Chemours’s stock fell $2.37 per share, or nearly 10%, from its closing price of $24.90 per share on June 27, 2019 to close at $22.53 per share on July 1, 2019. On August 1, 2019, after the market closed, Chemours announced lower guidance for 2019. On the following day, it filed its second quarter of 2019 Form 10-Q and revealed that its estimated liabilities were far greater than it had previously represented. On this news, Chemours’s stock price declined another 19% to close at $14.69 per share on August 2, 2019 on unusually high volume, eliminating over $560 million in shareholder value.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP