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Oklahoma City, OK (October 10, 2019) – On October 8, 2019, a securities class action lawsuit was filed in the United States District Court for the District of Delaware against The Chemours Company (NYSE: CC). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 16, 2017 through August 1, 2019. More specifically, 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. 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.
Plaintiff seeks to recover damages on behalf of all The Chemours Company shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, December 9, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org