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ARNC.US
id: 1480
Arconic (ARNC) Share Buyback and Acquisition Misrepresentation Case
S.D. New York
Court1:25-cv-00863
Case number04/19/2022
Class period Start05/03/2023
Class period End03/31/2025
Lead Plaintiff motion deadline- $ARNC investors filed a lawsuit against Arconic, alleging the company misled shareholders by failing to disclose acquisition offers while repurchasing shares at lower prices.
- On May 4, 2023, Arconic confirmed its sale to Apollo at $30 per share, leading to a 28.3% stock increase.
Case Details:
Between April 19, 2022, and May 3, 2023, Arconic assured investors of its strong financial position and continued stock repurchase program. However, during this period, the company failed to disclose multiple acquisition offers from Apollo Global Management, which valued the stock significantly higher than its market price.
In April 2022, Apollo made an initial offer to acquire Arconic for $34–$36 per share, but the company did not disclose this to shareholders. Later, in December 2022, Apollo submitted a revised offer at $30 per share, yet Arconic continued its share buyback program. Between June 2022 and January 2023, Arconic repurchased over 6.4 million shares at prices significantly below Apollo’s offers, preventing shareholders from realizing a fair value for their shares.
On February 28, 2023, The Wall Street Journal revealed Apollo’s acquisition interest, causing Arconic’s stock to jump 21.5%. Finally, on May 4, 2023, Arconic confirmed its sale to Apollo at $30 per share, leading to another 28.3% stock increase. Investors who sold their shares before these disclosures suffered financial losses due to Arconic’s failure to provide material information.
Based on these events, $ARNC investors filed a lawsuit against Arconic, claiming the company:
- It misled shareholders by failing to disclose acquisition offers while repurchasing shares at lower prices.
- It created artificially low stock prices, harming investors who sold before the buyout news became public.
Investors believe Arconic concealed critical acquisition discussions.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Short
Shock Event Date
02/28/2023
Filing date
01/29/2025
Lead Plaintiff Deadline
03/31/2025