The Chemours Company (NYSE: CC) Investor Alert: Lawsuit seeks to recover losses for certain Investors


A lawsuit was filed in the U.S. District Court for the District of Delaware by an investor who bought shares of The Chemours Company (NYSE: CC) alleging that the company violated federal securities laws in relation to some allegedly false and misleading statements made between February 10, 2023 and February 28, 2024.

You have specific options, and for some investors, there are tight deadlines, if you bought a sizable quantity of shares of The Chemours Company (NYSE: CC) between February 10, 2023 and February 28, 2024, and/or if you bought any NYSE: CC shares before February 2023 and you still own any of those shares. May 20, 2024 is the deadline. NYSE: CC investors can reach out to the Shareholders Foundation by phone at (858) 779-1554 or by email at [email protected].

Based in Wilmington, DE Performance chemicals are offered by The Chemours Company in North America, Europe, the Middle East, Africa, and Latin America.

The Chemours Company released its financial results for the fourth quarter and entire year 2022 on February 9, 2023. Chemours demonstrated its continued capacity to generate high free cash flow with reports of $94 million in the fourth quarter of 2022 and $447 million for the full year 2022. Free cash flow is defined as cash flows from operations less purchases of property, plant, and equipment.The Chemours Company confirmed that it generated $447 million in free cash flow for the entire year 2022 when it submitted its 2022 annual report on Form 10-K (the 2022 Annual Report) with the SEC the next day, February 10, 2023. The company’s CEO, Mark Newman, and CFO at the time, Sameer Ralhan, attested to the sufficiency of internal control over financial reporting and the correctness of the financial reports in connection with the 2022 Annual Report. Following that, and for the duration of the Class Period, Chemours included year-to-date and quarterly Free Cash Flow metrics in each of the company’s financial reports. Moreover, a number of defendants attested to the accuracy of the company’s financial statements and the sufficiency of its internal control over financial reporting.

The Chemours Company made an announcement on February 13, 2024, stating that it now expects to release its financial results for the fourth quarter and full year 2023 after market close on Wednesday, February 28, 2024. The financial results and conference call for the quarter and full year ended December 31, 2023 were originally scheduled for February 14, 2024 and February 15, 2024, respectively. The Company claims that the reason for the delay was that it needs more time to finish up its year-end reporting procedure and is assessing its internal control over financial reporting in order to maintain efficient information and communication controls. Additionally, Chemours disclosed that more time was required for its Audit Committee to carry out a relevant internal review.

Then, on February 29, 2024, just before the market opened, the Chemours Company shocked investors by announcing that it was postponing the filing of its 2023 annual report and that its Board of Directors had placed Vice President, Controller, and Principal Accounting Officer Camela Wisel, President and Chief Executive Officer Mark Newman, and Senior Vice President and Chief Financial Officer Jonathan Lock on administrative leave. This was done while the Board of Directors’ Audit Committee, which was supervising the internal review with the help of independent outside counsel, was handling the situation. The investigation’s purview, according to the company, encompasses the procedures for examining reports submitted to the Chemours Ethics Hotline and Chemours’ working capital management practices, as well as any associated effects on metrics used in the incentive plans of the company and certain non-GAAP metrics in its financial reports. As of December 31, 2023, the Company acknowledged that it is evaluating one or more potential material weaknesses in its internal control over financial reporting with respect to maintaining effective controls related to the control environment, including the effectiveness of the tone at the top set by certain members of senior management. This is because these issues are significant not only for executive compensation but also for investors’ assessment of Chemours’ financial performance.

In the fourth quarter of 2023, the Chemours Company announced on March 6, 2024, that the Audit Committee had determined that the senior management members who had been placed on administrative leave the previous week had attempted to accelerate the collection of receivables into the fourth quarter of 2023 that were initially scheduled to be received in the first quarter of 2024 and to postpone payments to some vendors that were originally scheduled to be paid in the fourth quarter of 2023 until the first quarter of 2024. Crucially, the Audit Committee discovered that these people made these efforts in part to fulfill publicly disclosed free cash flow targets by the Company, which would also be a significant factor in calculating the incentive compensation that executive officers would be eligible for. These cash flow measures saw a significant increase for the quarter ended December 31, 2022, and a decrease for the first quarter of 2023, according to the company. The Audit Committee review also found that comparable actions, albeit to a lesser extent, were taken in the fourth quarter of 2022.

The Chemours Company released its results for the fourth quarter and full year of 2023 on March 27, 2024. The Chemours Company reported that its Total Revenue declined from over $6.79 billion in 2022 to over $6.07 billion in 2023, and that its Net Income of $578 million in 2022 turned to a Net Loss of $238 million in 2023.

The Chemours Company (NYSE: CC) saw a decrease in share price from $39.05 in July 2023 to as low as $15.10 on February 29, 2024.

The plaintiff’s complaint claims that the defendants broke federal securities laws between February 10, 2023 and February 28, 2024, on behalf of buyers of common shares of The Chemours Company (NYSE: CC). More specifically, the plaintiff claims that between February 10, 2023 and February 28, 2024, the Defendants misrepresented and/or failed to disclose that certain of the Company s 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 the Company s AIPs and LTIPs, that the Company s accounting practices and procedures, including its internal control over financial reporting, were deficient, and that as a result, Defendants statements about the Company s business, operations, and prospects lacked a reasonable basis.

Shareholders Foundation should be contacted by those who bought shares of The Chemours Company (NYSE: CC) since they have specific alternatives.

Get in touch with Investors Foundation, Inc.Michael Daniels: +1-(858)-779-1554; 3111 Camino Del Rio North, Suite 42392108, San Diego(858)[email protected] is the fax number.

About The Shareholders Foundation, Inc.: We are a professional portfolio monitoring and settlement claim filing service that keeps investors informed about securities class actions, settlements, judgments, and other legal news pertaining to the stock and financial markets. We also conduct research on shareholder issues. With a vast network of contacts, Shareholders Foundation, Inc. provides support, guidance, and aid to each and every shareholder. It is not a law firm, The Shareholders Foundation, Inc. The Shareholders Foundation is not involved in the filed, reached, or settled cases, investigations, or settlements mentioned. The public is offered this information as a service. It should not be relied upon and is not meant to be legal advice.

Leave A Reply

Your email address will not be published.