WILMINGTON, Del. (Legal Newsline) - A shareholder who lost money on a stock drop is suing Chemours.
In a March 25 lawsuit filed in the United States District Court for the District of Delaware, Todd Masel, on behalf of himself and others similarly situated, has brought a class action against The Chemours Company, Mark E. Newman, Sameer Ralhan, and Jonathan Lock.
The case is centered around alleged violations of federal securities laws.
The complaint alleges that individuals or entities who purchased or otherwise acquired publicly traded Chemours securities between April 28, 2023, and February 28, 2024, suffered compensable damages due to Defendants’ violations of the Securities Exchange Act of 1934.
The complaint accuses all individual defendants of direct participation in company management at the highest levels and alleges they were involved in drafting, producing, reviewing and/or disseminating false and misleading statements about the company.
Specifically, the complaint targets Feb. 13's 8-K form and press release in which it said it was postponing the release of its financial results for the fourth quarter of 2023.
That led to a 12.6% stock drop, or $3.85 per share. A notice to the SEC later that month said it was evaluating the "tone at the top" set by senior management. The company suspended top executives and opened an accounting probe.
That caused the stock to fall even further, down 31.5% to $19.67 per share on Feb. 29.
Phillip Kim and Laurence Rosen of The Rosen Law Firm are pursuing the case, along with lawyers at Farnan LLP.