NEW YORK, Oct. 10, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP ("Kaplan Fox") (www.kaplanfox.com) has been investigating claims on behalf of investors who purchased shares of The Chemours Company ("Chemours" or the "Company") (NYSE: CC). A complaint has been filed in the United States District Court for the District of Delaware against the Company and certain executives. Investors who purchased Chemours' common stock may be affected and should contact Kaplan Fox immediately.
According to the complaint, Chemours is a spin-off of the Performance Chemicals division of industrial conglomerate E.I. du Pont de Nemours and Company ("DuPont"). Chemours, which began trading as a public company in July 2015, was originally DuPont's Performance Chemicals division. In the spin-off, Chemours inherited all environmental and other liabilities associated with the Performance Chemicals business. The action arises from Defendants' misrepresentations and omissions relating to Chemours' statements and accruals for environmental liabilities arising from the Company's production, use, and discharge of toxic chemicals, including perfluoroalkyl and polyfluoroalkyl substances ("PFAS") that have become the basis for environmental regulatory actions, prosecutions, personal injury lawsuits, and extensive remediation efforts.
The complaint alleges that Defendants misled investors by representing that Chemours had appropriately accounted and accrued reserves for its environmental liabilities, that the possibility of costs exceeding accrued amounts was "remote," and that, in any event, additional costs would not be material. Chemours also allegedly 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 allegedly traded at artificially inflated prices.
According to the complaint, through a series of disclosures beginning on May 6, 2019 and culminating on August 1, 2019 Chemours 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 in the Delaware Court of Chancery against DuPont on May 13, 2019, in which Chemours allegedly admitted that its spin-off from DuPont was part of a deliberate plan by DuPont to off-load its environmental liabilities and that Chemours faced over $2.5 billion in environmental liabilities, contrary to its public statements concerning the adequacy of its reserves and the unlikely and "remote" possibility that actual liabilities would exceed its reserves. The disclosures triggered sharp declines in the price of Chemours' stock, which lost half of 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.
If you purchased Chemours stock and are a member of the proposed Class, you may move the court no later than December 9, 2019 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP