According to the Complaint, Chemours was formerly the Performance Chemicals business of DuPont, and began trading as a public company after its spin-off in July 2015. Chemours produces a wide range of industrial and specialty chemicals products for various markets, operating through three segments: Titanium Technologies (TiO2, a premium white pigment used for whiteness and opacity in various foods, cosmetics, and other products), Flouroproducts (flouroproducts including PFAS, as well as refrigerants), and Chemical Solutions (industrial chemicals used in gold production, industrials, and consumer applications).
The Complaint alleges that, throughout the Class Period, Defendants misled investors by representing that Chemours had appropriately accounted and accrued reserves for its environmental liabilities, that the possibility of costs exceeding accrued amounts was "remote," and that, in any event, additional costs would not be material. Chemours also assured investors that its "policies, standards and procedures are properly designed to prevent unreasonable risk of harm to people and the environment," and that its "handling, manufacture, use and disposal of hazardous substances are in accordance with applicable environmental laws and regulations."
A series of disclosures beginning on May 6, 2019 and culminating on August 1, 2019 revealed the truth about the Company's environmental practices, and that Chemours' liabilities were far greater than the Company had represented. These disclosures included the June 28, 2019 unsealing of a complaint Chemours had filed under seal against DuPont on May 13, 2019, in which Chemours made detailed allegations that its spin-off from DuPont was part a deliberate plan by DuPont to rid itself of significant exposures incurred through decades of PFAS discharge and to unload that responsibility onto Chemours. These disclosures triggered sharp declines in the price of Chemours stock, which lost half its value during this time frame, with Chemours shares falling from $34.18 per share on May 3, 2019 to close at $14.69 per share on August 2, 2019.
On December 5, 2019, the Court issued an Order consolidating cases. On January 8, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on April 3.