NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/arconic/) today announced that a class action has been commenced on behalf of purchasers of Arconic Inc. (“Arconic”) (NYSE:ARNC) common or preferred stock during the period between November 4, 2013 and June 26, 2017 (the “Class Period”). This action was filed in the Southern District of New York and is captioned Tripson v. Arconic Inc., et al., No. 17-5369.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from July 13, 2017. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/arconic/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Arconic and its former CEO with violations of the Securities Exchange Act of 1934. Arconic is engaged in engineering and manufacturing aluminum and other lightweight metals into products used worldwide in the aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial industries. Arconic’s aluminum Reynobond PE panels consist of two sheets of thin aluminum, each permanently bonded to an extruded thermoplastic core, which are combined with insulation to form cladding used to cover residential and office towers and other commercial structures.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Arconic’s business and operations, including that, contrary to defendants’ representations that Reynobond PE was “a fully tested product, with building-code approvals throughout the world,” Arconic was knowingly selling Reynobond PE for use in construction projects where the product was to be used in a manner that the Company knew was unsafe and presented a fire hazard, and that Arconic’s marketing and sales of highly flammable Reynobond PE for use in high-rise tower projects across the United Kingdom and other countries directly conflicted with the purported strong culture of safety, ethics and legal compliance that the Company claimed to have and exposed Arconic to hundreds of millions of dollars in potential civil and criminal liability and reputational harm. As a result of these false statements and/or omission, Arconic common and preferred stock traded at artificially inflated prices throughout the Class Period, with its common stock reaching a Class Period high of nearly $40 per share. These materially false statements and omissions also permitted Arconic to improve its corporate debt ratings, which facilitated Arconic selling $1.250 billion in debt securities and another $1.250 billion in depositary shares in two underwritten securities offerings on September 18, 2014.
On June 14, 2017, a fire engulfed Grenfell Tower, a 24-story, 220-foot high residential tower block of public housing flats in North Kensington, West London. The Grenfell Tower fire resulted in at least 79 fatalities and over 70 injuries. On June 24, 2017, Reuters reported that Arconic employees knew Reynobond PE panels were being used on the Grenfell Tower, despite the warnings in Arconic’s own sales brochures that such use was inappropriate and a fire hazard. The article cited email communications of Arconic’s own personnel, dating back to 2014, questioning the use of the cheaper but more dangerous product on the Grenfell Tower project. In response to the Reuters article, the prices of Arconic common and preferred stock declined precipitously, with Arconic common stock trading as low as $22.65 in intraday trading on June 26, 2017, an 11% decline.
After the close of trading on June 26, 2017, Arconic announced that it would stop selling Reynobond PE panels for use on residential high-rises. On June 26, 2017, the Guardian also reported that the U.K. Department for Communities and Local Government had instituted a “combustibility testing programme” for aluminum composite materials and that in early testing, 60 samples from buildings in 25 areas were classed as combustible, with approximately 540 then still yet to be tested. As further reported by the Times on the same day, “[t]he Metropolitan Police ha[d] also said they [would] consider manslaughter among other charges,” because “in Britain, corporations can be charged with manslaughter.” On this news, the prices of Arconic common and preferred stock fell further, with Arconic common stock trading as low as $21.76 per share in intraday trading on June 27, 2017, and closing down more than $2 per share, a more than 9% decline.
Plaintiff seeks to recover damages on behalf of all purchasers of Arconic common or preferred stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as a leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of shareholder class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.