Venator investors may receive additional information about the case by clicking the link "Submit Your Information" above.
Venator is a global chemical company primarily focused on the development and production of titanium dioxide (“TiO2”) and performance additives, including functional additives, color pigments, timber treatments and water treatments. Prior to the IPO, Venator operated as a division of Defendant Huntsman Corporation (“Huntsman”). Prior to its spin-off from Huntsman, Venator operated a major TiO2 manufacturing facility in Pori, Finland (the “Facility”). The Facility’s output constituted a substantial percentage of Venator’s business.
On January 30, 2017, the Facility was engulfed by a massive fire (the “Fire”). After the Fire, Huntsman assured the public that the Fire had been “quickly” extinguished and that the Facility was “insured for property damages as well as earnings losses.” Huntsman also assured investors that it was “committed to repairing the [F]acility as quickly as possible.”
On August 3, 2017, less than eight months after the Fire, Huntsman spun-off Venator by completing the IPO. In connection with the IPO, Huntsman raised $522 million in proceeds by issuing more than 26 million ordinary shares at a price of $20.00 per share. The prospectus and registration statement issued in connection with the IPO assured investors that Venator was “committed to repairing the [F]acility as quickly as possible” and that Venator expected a gradual return to functionality, with the Facility being restored to “approximately 40% capacity in the second quarter of 2018; and full capacity around the end of 2018.” The prospectus and registration statement also stated that the Facility would be repaired with insurance proceeds and within the insurance policy limits.
On December 4 2017, Venator completed its SPO, raising $533 million in proceeds by selling more than 23.7 million ordinary shares.
The complaint alleges that investors began to learn the truth of the Defendants’ misleading statements through a series of disclosures. For example, on July 31, 2018, Venator revealed that the Facility was much more severely damaged by the Fire than had previously been disclosed. Following this news, the price of Venator ordinary shares declined $0.73 per share, or approximately 4.8%, from a close of $15.35 per share on July 30, 2018, to close at $14.62 per share on July 31, 2018.
Then, on September 12, 2018, Venator informed investors that it was now abandoning its attempts to repair the Facility because production capacity at the Facility had not meaningfully improved since the Offerings. The Defendants also admitted that, due to this decreased capacity, Venator was no longer a leading producer of TiO2. Additionally, the Defendants announced that Venator would incur up to $150 million in additional costs to close the Facility. Following this news, the price of Venator ordinary shares declined $0.54 per share, or approximately 4.8%, from a close of $11.35 per share on September 11, 2018, to close at $10.81 per share on September 12, 2018.
Finally, on October 30, 2018, Venator disclosed that, in addition to more than $500 million in Fire-related costs and lost business covered by Venator’s insurance policy, Venator incurred an additional restructuring charge of approximately $415 million and would incur further charges of $220 million through 2024 related to the closure of the Facility. Following this news, the price of Venator ordinary shares declined $1.53 per share, or 19%, from a close of $8.00 per share on October 29, 2018, to close at $6.47 per share on October 30, 2018.
The complaint alleges that, throughout the Class Period, the Defendants failed to disclose that: (1) the Fire was far more damaging to the Facility than had been represented to investors, resulting in over $1 billion in damage and rendering the Facility beyond repair; (2) the damage to the Facility exceeded Venator’s insurance policy limits by hundreds of millions of dollars; (3) Venator had lost, with essentially no hope of restoration, approximately 80% of the Facility’s TiO2 production capacity; (4) Venator incurred tens of millions of dollars in costs in connection with attempts to repair the Facility; (5) Venator’s reported annual TiO2 production capacity was inflated by approximately 15%; and (6) as a result, Venator would incur over $600 million in restructuring expenses and other charges associated with the closure and replacement of the Facility.
If you are a member of the class described above, you may no later than September 30, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Returning the attached form 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.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com