A class action lawsuit was filed against Tronox Holdings (TROX) on September 3, 2025. The plaintiffs (shareholders) alleged that they bought Tronox stock at artificially inflated prices between February 12, 2025, and July 30, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought TROX stock during that period can click here to learn about joining the lawsuit.
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Tronox is a vertically integrated mining and inorganic chemical business. Tronox mines and processes titanium ore (TiO2), zircon, rare earths and other materials and manufactures titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals.
Tronox’s claims about the demand for its pigment and zircon products are at the heart of the current complaint.
Tronox’s Misleading Claims
According to the lawsuit, Tronox and two of its senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about the Company’s ability to predict the demand for its pigment and zircon products, and ancillary issues, from SEC filings and related material.
At the beginning of the Class Period, the CEO stated that strong TiO2 sales in Asia Pacific and Latin America offset weak European demand, while North America met expectations. Zircon’s sales beat guidance due to strong execution, with overall pricing remaining as anticipated.
Additionally, during an earnings call on February 13, the CFO noted that there was a 3% year-over-year rise in TiO2 revenues from higher volumes, partly offset by lower prices and product mix. Meanwhile, sequential revenues fell 13% and volumes dropped 11%, in line with prior guidance of a 10% to 15% decline.
In the same earnings call, the CEO noted that based on the current market conditions and momentum, revenues for 2025 were projected between $3 billion and $3.4 billion and adjusted EBITDA was guided between $525 million and $625 million.
Finally, in a press release dated April 30, the CEO stated that Tronox reported stronger-than-normal seasonal TiO2 demand, led by Europe’s recovery following anti-dumping duties. North America was also improving, while competition in Latin America, the Middle East, and Asia pressured sales.
However, subsequent events (detailed below) revealed that Tronox’s forecasting processes fell short as sales continued to decline and costs increased, ultimately derailing the company’s revenue projections.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business and prospects during the Class Period.
The information became clear on July 30, 2025, when Tronox released its second-quarter fiscal 2025 results. The company reported a sharp drop in TiO2 sales, citing a weak coatings season and increased competition. As a result, Tronox lowered its fiscal 2025 revenue forecast and cut its dividend by 60% from $0.13 per share to $0.05 per share. Following the news, TROX stock slumped nearly 38%.
To conclude, the defendants failed to inform investors about the softening coatings season and heightened competitive dynamics, which could impact future sales. Due to these issues, TROX stock has lost nearly 63% year-to-date.
