NEW YORK, NY - 
(NewMediaWire) - May 9, 2024 - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) reminds investors that a complaint has been filed on behalf of purchasers or acquirers of the common stock of The Chemours Company (“Chemours” or the “Company”) (NYSE: CC) between February 10, 2023 and February 28, 2024 (the “Class Period”).
Deadline Reminder: If you are a member of the proposed Class, you may move the court no later than May 20, 2024 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
According to the complaint, on February 13, 2024 investors began to learn the truth when Chemours issued a press release announcing that the Company was delaying the release of Q4 and full year 2023 financial results as the Company evaluates its internal control over financial reporting as of December 31, 2023. The Company also stated that “[t]he Company’s Audit Committee also needs additional time to complete a related internal review.”
Following this news, the price of Chemours stock fell $3.85 per share, about 12.6%, to close at $26.64 per share on February 14, 2024.
Then, before the market opened on February 29, 2024, Chemours issued a press release announcing that it had placed three executives, including the Company’s CEO and CFO, on administrative leave pending the completion of the internal review being overseen by the Audit Committee of the Board of Directors with the assistance of independent outside counsel. Additionally, according to the Company, the scope of the internal review “includes the processes for reviewing reports made to the Chemours Ethics Hotline” and Chemours’ “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. Additionally, Chemours indicated that “the Company 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 . . .”
Following this news, the price of Chemours stock fell $9.05 per share, or 31.5%, to close at $19.67 per share on February 29, 2024.
On March 6, 2024, after the end of the Class Period, Chemours 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." Further, "[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."
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
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New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
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Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
