NEW YORK, Aug. 24, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Venator Materials PLC ("Venator" or the "Company") (NYSE: VNTR). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Venator and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On January 30, 2017, a fire ravaged one of Venator's key Titanium Dioxide manufacturing plants located in Pori, Finland. Before the fire, the Pori facility could produce up to 130,000 metric tons of Titanium Dioxide each year, which represented approximately 17% of the Company's total Titanium Dioxide capacity and approximately 2% of total global demand for the chemical.
On or around August 3, 2017, Venator conducted its initial public offering ("IPO"), through which more than 26 million ordinary shares of Venator were sold at $20 per share. Four months after the IPO, on or around December 4, 2017, Venator conducted a secondary public offering, through which an additional 23.7 million ordinary shares of Venator were sold at $22.50 per share.
On July 31, 2018, Venator revealed that the fire damage at the Pori facility was far more extensive than the Company had previously represented to investors. Specifically, Venator announced that the cost to repair the facility had climbed to more than $375 million above the insurance policy limits, more than double the amount disclosed to investors just two months after the IPO. On this news, Venator's stock price fell $0.73 per share, or 4.76%, to close at $14.62 per share on July 31, 2018.
Then, on September 12, 2018, Venator announced that it was abandoning the Pori facility altogether, despite the Company's previous assurances that the site would be repaired and restored back to its full operating capacity. The Company also revealed that the facility was still only operating at 20% capacity and thus had not increased production by any meaningful amount during the thirteen months since the IPO. On this news, Venator's stock price fell $0.54 per share, or 4.76%, to close at $10.81 per share on September 12, 2018.
Finally, on October 30, 2018, Venator announced that in addition to the over $500 million in costs and lost business associated with the Pori fire incurred to date—which had been covered by Venator's insurance policy—the Company incurred an additional restructuring expense of approximately $415 million and would incur additional "charges of $220 million through the end of 2024" related to the Pori site. On this news, Venator's stock price fell $1.53 per share, or 19.13%, to close at $6.47 per share on October 30, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP