We are investigating The Chemours Company (CC) (“Chemours” or the “Company”) for potential violations of the federal securities laws.
On May 6, 2019, Larry Robbins of Glenview Capital Management gave a presentation at the Sohn Investment Conference that disclosed significant new facts about Chemours’ environmental liabilities, including a detailed analysis estimating the Company’s true per- and polyfluoroalkyl substances (“PFAS”) exposure was actually between $4 billion and $6 billion. On this news, Chemours’ stock price fell $2.57 per share, or 7.52%, to close at $13.61 per share on May 6, 2019. Then, on June 28, 2019, the Delaware Court of Chancery ordered the unsealing of court filings in which Chemours acknowledged that it faced over $2.5 billion in environmental liabilities and conceded that the Company’s accountants did not even attempt to appropriately assess Chemours’ actual PFAS litigation exposure “precisely because the liabilities were so volatile and potentially huge that [Chemours] could not profitably sell the Performance Chemicals unit” if it had accurately accounted for them. On this news, Chemours’ stock price fell $2.37 per share, or 9.52%, over two trading days to close at $22.53 per share on July 1, 2019. Finally, on August 1, 2019, Chemours issued a press release reporting its second quarter financial results and lowered its full-year guidance. In its Form 10-Q filed the next day, Chemours disclosed significant increases in the Company’s estimated liabilities, including numerous new legal and regulatory actions related to PFAS. On this news, Chemours’ stock price fell $3.47 per share, or 19.11%, to close at $14.69 per share on August 2, 2019.