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EAF.US
id: 968
GrafTech (EAF) Monterrey Facility Shutdown Case
N.D. Ohio
Court1:24-cv-00154
Case number08 Feb 2019
Class period Start03 Aug 2023
Class period End25 Mar 2024
Lead Plaintiff motion deadline- $EAF stockholder filed a claim vs. GrafTech for hiding setbacks on its Monterrey facility, which involved environmental issues.
- In August 2023, weak results coming from the facility shutdown sent $EAF lower by 22.5%, wiping out $300M+ of shareholder value.
On August 4, 2023, GrafTech (EAF) reported disappointing Q2 2023 financial and operational results due to the effects of the Monterrey facility shutdown.
- Sales declined 49% compared to Q2 2022 as GrafTech continued to “recover” from the effects of the Monterrey facility shutdown.
- Kessler described the Monterrey suspension as the “key driver” of the underperformance and revealed that GrafTech’s ability to secure customer contracts would continue to be impacted in H2 2023.
On this news, $EAF fell 22.5% and lost over $300 million of its market capitalization, seriously damaging investors.
- On September 16, 2022, GrafTech (EAF) disclosed the temporary suspension of operations in the State of Nuevo León by Mexican authorities. The Company’s operating license in Mexico was also recalled. On this news, $EAF fell 8.5%.
- Then, on April 28, 2023, GrafTech released its first Q3 2023 financial results, with sales declining 62% compared to the previous year, reporting a net loss of over $7 million compared to a net income of $124 million the previous year. On this news, $EAF fell 9.5%.
Considering all the information, investors have grounds to suspect that GrafTech and its executives failed to timely disclose and resolve regulatory and operational issues, which consequently led to their losses.
The first $EAF stockholder already filed an initial claim vs. GrafTechhiding setbacks on its Monterrey facility in Ohio court.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
04 August 2023
Filing date
25 January 2024
Lead Plaintiff Deadline
25 March 2024