SAN DIEGO & WILMINGTON, Del.–(BUSINESS WIRE)–$CC #ClassAction–Shareholder rights law firm Robbins LLP announces that it is investigating the officers and directors of The Chemours Company (NYSE: CC) for breaches of fiduciary duty and violations of the Securities and Exchange Act of 1934. Chemours, a spin-off from DuPont, provides a wide range of industrial and specialty chemicals products for various markets and has a long history of using of perfluoroalkyl and polyfluoroalkyl substances (“PFAS”).
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The Chemours Company (CC) May Have Misled Shareholders
In the 1970s, DuPont’s company scientists became aware that PFAS posed negative health risks, including liver damage and birth defects. To address the mounting liability of PFAS, which were becoming the basis for environmental regulatory actions and governmental prosecutions, in 2015 DuPont spun off Chemours to shift the responsibility of its environmental liabilities onto Chemours. Chemours concealed these facts and assured investors that liabilities were “well understood [and] well managed” and that it was accurately reserving for its potential liabilities. On May 6, 2019, Glenview Capital Management revealed that Chemours’ environmental liabilities and true PFAS exposure was between $4 – $6 billion, dramatically higher than Chemours’ average liability accruals. Then, Chemours’ complaint against DuPont – in which Chemours seeks a ruling that its environmental exposures were so large and its reserves so deficient that it was actually insolvent at the time of spin-off – was unsealed revealing that contrary to its public statements concerning the adequacy of its reserves, Chemours had insufficient financial resources to pay for its environmental liabilities. Finally, on August 1, 2019, Chemours lowered its full-year guidance, reducing its cash flow outlook from over $550 million to just $100 million. Following these disclosures, Chemours’ stock price plummeted 57% and has yet to recover.
The Chemours Company (CC) Shareholders Have Legal Options
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