SAN FRANCISCO, Feb. 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:
The litigation focuses on GrafTech’s representations about one of its highest-capacity and lowest-cost facilities, located in Monterrey, Mexico (“Monterrey facility”), where the company manufactured all its pin stock inventory – a critical component of its electric arc furnace steel manufacturing process.
The complaint alleges GrafTech misrepresented and concealed that its Monterrey facility was not in compliance with applicable environmental laws and regulations. Instead, 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.
As the result of the above, GrafTech was acutely exposed to undisclosed material risks that the Monterrey facility would be severely disrupted by government action or enforcement and its supplies of pin stock and electrodes would be materially diminished.
Investors began to learn the truth 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 »
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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Reed Kathrein, 844-916-0895