Press release
Lawsuit filed for Investors who lost money with shares of The Chemours Company (NYSE: CC)
An investor, who purchased shares of The Chemours Company (NYSE: CC), filed a lawsuit over alleged violations of Federal Securities Laws by The Chemours Company in connection with certain allegedly false and misleading statements.
Investors who purchased shares of The Chemours Company (NYSE: CC) have certain options and for certain investors are short and strict deadlines running. Deadline: May 20, 2024. NYSE: CC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Wilmington, DE based The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America.
On February 9, 2023, the Chemours Company announced its fourth quarter and full year 2022 financial results. Chemours reported Free Cash Flow (defined as cash flows from operations, less purchases of property, plant, and equipment) of $94 million in the fourth quarter of 2022 and $447 million in full year 2022, "demonstrating [Chemours's] continuing ability to generate strong Free Cash Flow."
The following day, February 10, 2023, the Chemours Company filed its 2022 annual report on Form 10-K (the "2022 Annual Report") with the SEC and reiterated that it generated Free Cash Flow of $447 million in full year 2022. In connection with the 2022 Annual Report, the Company's CEO, Mark Newman, and then-CFO, Sameer Ralhan, certified the accuracy of the Company's financial reports and the adequacy of the Company's internal control over financial reporting. Thereafter and throughout the Class Period, Chemours reported quarterly and year-to-date Free Cash Flow metrics in each of the Company's quarterly financial reports and certain Defendants certified the accuracy of the Company's financial reports and the adequacy of the Company's internal control over financial reporting.
On February 13, 2024, The Chemours Company "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, which had previously been scheduled for February 14, 2024 and February 15, 2024, respectively," and that it now "expect[ed] to issue its fourth quarter and full year 2023 financial results after market close on Wednesday, February 28, 2024." According to the Company, 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." Chemours also revealed that it needed additional time for its Audit Committee to conduct a related internal review.
Then, before the market opened on February 29, 2024, the Chemours Company stunned investors when it announced that 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 the Company, the scope of the investigation "includes the processes for reviewing reports made to the Chemours Ethics Hotline" and Chemours's "practices for managing working capital, including the related impact on metrics within the Company's incentive plans [and] certain non-GAAP metrics" in the Company's financial reports. Given the importance of these issues-not only to executive compensation, but also investors' assessment of Chemours's financial performance-the Company acknowledged that it "is evaluating one or more potential material weaknesses in its internal control over financial reporting as of December 31, 2023 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."
On March 6, 2024, the Chemours Company announced that the 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." Critically, "[t]he Audit Committee found that these individuals engaged in these efforts in part to meet free cash flow targets that the Company had communicated publicly, and which also would be part of a key metric for determining incentive compensation applicable to executive officers." According to the Company, "[t]he Audit Committee review also determined that similar actions, though to a lesser extent, were taken in the fourth quarter of 2022, resulting in a significant increase in these cash flow measures for the quarter ended December 31, 2022, and a decrease in these measures in the first quarter of 2023."
On March 27, 2024, The Chemours Company reported its fourth quarter and full year 2023 results. 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.
Shares of The Chemours Company (NYSE: CC) declined from $39.05 per share in July 2023, to as low as $15.10 per share on February 29, 2024.
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.
Those who purchased shares of The Chemours Company (NYSE: CC) have certain options and should contact the Shareholders Foundation.
Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Investors who purchased shares of The Chemours Company (NYSE: CC) have certain options and for certain investors are short and strict deadlines running. Deadline: May 20, 2024. NYSE: CC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Wilmington, DE based The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America.
On February 9, 2023, the Chemours Company announced its fourth quarter and full year 2022 financial results. Chemours reported Free Cash Flow (defined as cash flows from operations, less purchases of property, plant, and equipment) of $94 million in the fourth quarter of 2022 and $447 million in full year 2022, "demonstrating [Chemours's] continuing ability to generate strong Free Cash Flow."
The following day, February 10, 2023, the Chemours Company filed its 2022 annual report on Form 10-K (the "2022 Annual Report") with the SEC and reiterated that it generated Free Cash Flow of $447 million in full year 2022. In connection with the 2022 Annual Report, the Company's CEO, Mark Newman, and then-CFO, Sameer Ralhan, certified the accuracy of the Company's financial reports and the adequacy of the Company's internal control over financial reporting. Thereafter and throughout the Class Period, Chemours reported quarterly and year-to-date Free Cash Flow metrics in each of the Company's quarterly financial reports and certain Defendants certified the accuracy of the Company's financial reports and the adequacy of the Company's internal control over financial reporting.
On February 13, 2024, The Chemours Company "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, which had previously been scheduled for February 14, 2024 and February 15, 2024, respectively," and that it now "expect[ed] to issue its fourth quarter and full year 2023 financial results after market close on Wednesday, February 28, 2024." According to the Company, 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." Chemours also revealed that it needed additional time for its Audit Committee to conduct a related internal review.
Then, before the market opened on February 29, 2024, the Chemours Company stunned investors when it announced that 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 the Company, the scope of the investigation "includes the processes for reviewing reports made to the Chemours Ethics Hotline" and Chemours's "practices for managing working capital, including the related impact on metrics within the Company's incentive plans [and] certain non-GAAP metrics" in the Company's financial reports. Given the importance of these issues-not only to executive compensation, but also investors' assessment of Chemours's financial performance-the Company acknowledged that it "is evaluating one or more potential material weaknesses in its internal control over financial reporting as of December 31, 2023 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."
On March 6, 2024, the Chemours Company announced that the 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." Critically, "[t]he Audit Committee found that these individuals engaged in these efforts in part to meet free cash flow targets that the Company had communicated publicly, and which also would be part of a key metric for determining incentive compensation applicable to executive officers." According to the Company, "[t]he Audit Committee review also determined that similar actions, though to a lesser extent, were taken in the fourth quarter of 2022, resulting in a significant increase in these cash flow measures for the quarter ended December 31, 2022, and a decrease in these measures in the first quarter of 2023."
On March 27, 2024, The Chemours Company reported its fourth quarter and full year 2023 results. 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.
Shares of The Chemours Company (NYSE: CC) declined from $39.05 per share in July 2023, to as low as $15.10 per share on February 29, 2024.
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.
Those who purchased shares of The Chemours Company (NYSE: CC) have certain options and should contact the Shareholders Foundation.
Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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