NEW YORK, Oct. 11, 2019 /PRNewswire/ -- As previously announced on October 9, 2019, Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") filed the first and only 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 is pending in the U.S. District Court for the District of Delaware and has now been assigned a civil action number, and is captioned Electrical Workers Pension Fund, Local 103, I.B.E.W. v. The Chemours Company, No. 1:19-cv-01911 (D. Del.). A copy of the complaint is available on BLB&G's website at www.blbglaw.com.
Based on an extensive investigation, the complaint alleges that Defendants violated the federal securities laws by making a series of false and misleading statements concerning Chemours' historical environmental liabilities arising from decades-long production, use, and discharge of chemicals, 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.
Chemours is a spin-off of the Performance Chemicals division of industrial conglomerate E.I. du Pont de Nemours and Company ("DuPont") and 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 Complaint alleges that, from February 16, 2017 through August 1, 2019, inclusive (the "Class Period"), Defendants misled investors by representing that Chemours had appropriately accounted and accrued reserves for these environmental liabilities, that the possibility of costs exceeding accrued amounts was "remote," and that, in any event, additional costs would be "not 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 nearly 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.
The complaint 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 during the Class Period.
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 date that notice of the pendency of this action was first published on 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.
The action was filed by Electrical Workers Pension Fund, Local 103, I.B.E.W. ("Local 103"). Local 103 is represented by BLB&G, a firm of over 150 attorneys with offices in New York, California, Louisiana, Illinois, and Delaware. 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 michaelb@blbglaw.com.
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, and shareholders' rights, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
CONTACT:
Michael D. Blatchley
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1281
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SOURCE Bernstein Litowitz Berger & Grossmann LLP