COMPANY |
Dow Inc. |
COURT |
United States District Court for the Eastern District of Michigan |
CASE NUMBER |
1:25-cv-12744 |
JUDGE |
The Hon. Thomas L. Ludington |
CLASS PERIOD |
January 30, 2025 through July 23, 2025 |
SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS OCTOBER 28, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired Dow Inc. ("Dow") (NYSE: DOW) securities between January 30, 2025 and July 23, 2025, inclusive (the “Class Period”).
The Class Period begins on January 30, 2025, when Dow issued a press release during pre-market hours reporting its financial results for the fourth quarter of 2024. Specifically, Dow stated that “Despite persistently weak macroeconomic conditions, Team Dow delivered our fifth consecutive quarter of [Y/Y] volume growth, leveraging our cost-advantaged footprint to capture resilient demand for high-value applications,” and that Dow remained “confident that Dow will benefit from the completion of our near-term incremental growth projects and an enhanced focus on operational discipline in 2025.” On a related conference call held that same day, Dow continued to tout its ability to “deliver . . . [Y/Y] volume growth despite continued weak macroeconomic conditions” and ultimately “foster a sustainable future, achieve long-term profitable growth, and enhance shareholder returns.” Likewise, Dow touted its “near-term growth investments” that “will enable improved underlying earnings and margins across the cycle,” and downplayed concerns with demand and sales across Dow’s various markets notwithstanding deteriorating macroeconomic conditions and headwinds.
On June 23, 2025, BMO Capital downgraded its recommendation on Dow to "Underperform" from "Market Perform" while also cutting its price target on the company's stock to $22.00 per share from $29.00 per share, citing sustained weakness across key end markets and mounting pressure on Dow's dividend. On this news, Dow's stock price fell $0.89 per share, or 3.21%, to close at $26.87 per share on June 23, 2025.
Then, on July 24, 2025, Dow issued a press release reporting its financial results for the second quarter of 2025. Therein, Dow reported a non-GAAP loss per share of $0.42, significantly larger than the approximate $0.17 to $0.18 per share loss expected by analysts. Dow also reported net sales of $10.1 billion, representing a 7.3% year-over-year decline and missing consensus estimates by $130 million, "reflecting declines in all operating segments." Dow further reported, among other things, that "[s]equentially, net sales were down 3%, as seasonally higher demand in Performance Materials & Coatings was more than offset by declines across the other operating segments." Dow blamed these disappointing results on "the lower-for-longer earnings environment that our industry is facing, amplified by recent trade and tariff uncertainties," while providing a dour outlook marked by "signs of oversupply from newer market entrants who are exporting to various regions at anti-competitive economics."
In a separate press release issued the same day, Dow revealed that it was cutting its dividend in half, from $0.70 per share to only $0.35 per share, citing the need for "financial flexibility amidst a persistently challenging macroeconomic environment."
Following these disclosures, Dow's stock price fell $5.30 per share, or 17.45%, to close at $25.07 per share on July 24, 2025.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.