NEW YORK, April 23, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against The Chemours Company (“Chemours” or the “Company”) (NYSE: CC) and reminds investors of the May 20, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Chemours To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 investing in Chemours stock or options between February 10, 2023 and February 28, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/CC.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) certain of Chemours' senior executive officers manipulated Free Cash Flow targets as a means to maximize additional cash and stock incentive compensation applicable to executive officers pursuant to Chemours' Annual Incentive Plans and Long-Term Incentive Plans; and (ii) Chemours' accounting practices and procedures, including its internal control over financial reporting, were deficient.
The Chemours class action lawsuit further alleges that on February 13, 2024, Chemours "announced that it has postponed the release of its financial results and conference call related to the fourth quarter and full year ended December 31, 2023." The complaint alleges that according to Chemours, the delay was necessary "because it needs additional time to complete its year-end reporting process" and "is evaluating its internal control over financial reporting . . . with respect to maintaining effective controls related to information and communications." On this news, the price of Chemours stock fell more than 12%, according to the complaint.
Then, on February 29, 2024, the Chemours class action lawsuit further alleges that Chemours announced it was delaying the filing of its annual report for 2023 and that its Board of Directors had "place[d] President and Chief Executive Officer Mark Newman, Senior Vice President and Chief Financial Officer Jonathan Lock and Vice President, Controller and Principal Accounting Officer Camela Wisel on administrative leave . . . pending the completion of an internal review being overseen by the Audit Committee of the Board of Directors with the assistance of independent outside counsel." According to Chemours, the scope of the investigation "includes the processes for reviewing reports made to the Chemours Ethics Hotline" and Chemours' "practices for managing working capital, including the related impact on metrics within [Chemours'] incentive plans [and] certain non-GAAP metrics" in Chemours' financial reports, the complaint further alleges. On this news, the price of Chemours stock fell more than 31%, according to the complaint.
The Chemours class action lawsuit also alleges that on March 6, 2024 Chemours announced, among other things, that the Board's Audit Committee concluded "that the members of senior management who were placed on administrative leave last week engaged in efforts in the fourth quarter of 2023 to delay payments to certain vendors that were originally due to be paid in the fourth quarter of 2023 until the first quarter of 2024, and to accelerate the collection of receivables into the fourth quarter of 2023 that were originally not due to be received until the first quarter of 2024." The Audit Committee also revealed that it "found that these individuals engaged in these efforts in part to meet free cash flow targets that [Chemours] had communicated publicly, and which also would be part of a key metric for determining incentive compensation applicable to executive officers."
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Chemours’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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