A class action lawsuit was filed against The Chemours Company (NYSE:CC) on March 21, 2024. The plaintiffs (shareholders) alleged that they bought CC stock at artificially inflated prices between February 10, 2023, and February 28, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought CC stock during that period can click here to learn about joining the lawsuit.
Chemours is a specialty chemicals company best known for its high-quality titanium dioxide and low global warming potential thermal management solutions. Its products are used in various industries, including automotive, paints, laminates, advanced electronics, construction, energy, and telecommunications. Chemours says it serves 2,700 customers in over 110 countries.
The plaintiffs maintain that Chemours and four of its former senior officers deceived investors by repeatedly lying and withholding vital information about deficiencies in the Company’s accounting practices and procedures, and the conduct of some of its senior officers.
The truth was revealed in a series of events between February 13, 2024 and February 29, 2024, when the company postponed the date of filing its Q4 and full year 2023 financial results from February 14 to February 28. Chemours cited the need for additional time for its Audit Committee to conduct a related internal review, for the postponement. Finally, on February 29, before the market opened, Chemours further delayed the release of its 2023 Annual report while also announcing that its Board of Directors had placed some of its senior officers on administrative leave pending the outcome of the investigation.
Interestingly, during the Class Period, the ex-CEO and ex-CFO had certified in the FY23 annual report that “the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.”
As per the class action lawsuit, The Chemours Company caused its stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about the company’s financial prospects during the Class Period.
Notably, CC stock plunged 31.5% on February 29, causing massive damage to shareholders’ returns.
