SAN FRANCISCO, March 12, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges GrafTech International Ltd. (NYSE: EAF) investors who suffered substantial losses to submit your losses now.
GrafTech International Ltd. (NYSE: EAF) Securities Fraud Class Action:
GrafTech continues to feel the residual impact of the temporary suspension of operations in its Monterrey, Mexico facility that began near the end of the third quarter 2022. On Feb. 14, 2024, GrafTech released its financial results for 2023, reporting a net loss of $255 million. Timothy Flanagan, GrafTech’s interim CEO, cited the temporary suspension of operations in Mexico as one of the reasons why 2023 results fell short of expectations.
The disclosure comes on the heels of a securities class action complaint alleging GrafTech misrepresented and concealed that its Monterrey facility was not in compliance with applicable environmental laws and regulations. Instead, the lawsuit alleges the Monterrey facility had for decades chronically contaminated neighboring communities with harmful carcinogenic gasses and particulate matter.
The complaint also alleges that Defendants omitted to disclose that GrafTech had signed agreements with local authorities committing to improving the environmental performance of the Monterrey facility, but repeatedly failed to honor its commitments.
The truth emerged over a series of partial disclosures, beginning first on Sept. 16, 2022, when GrafTech unexpectedly revealed that government regulators shut down the Monterrey facility. Mexican news outlets reported that the shutdown order was made in response to GrafTech’s excessive pollution of carcinogenic gasses and particulate into neighboring communities.
Then, on Feb. 3, 2023, GrafTech announced disappointing Q4 and FY 2022 financial results and slashed its year-over-year sales outlook for the first half of 2023 by 50% (blaming the Monterrey facility closure) and revealed a significant depletion in its on-hand pin stock inventory.
Further, on Apr. 28, 2023, GrafTech announced another disappointing quarter, the company again blamed the closure.
Finally, on Aug. 4, 2023, GrafTech reported that it suffered an $8 million net loss during Q2 2023 versus $115 million in net income in Q2 2022. The company again blamed its disastrous results on the closure.
If you invested in GrafTech and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the GrafTech case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding GrafTech should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EAF@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
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