LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Sotera Health Company (“Sotera” or the “Company”) (NASDAQ: SHC) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On or about November 20, 2020, Sotera conducted its initial public offering (“IPO”), selling 53.59 million shares of common stock at $23 per share. On or about March 18, 2021, the Company conducted its secondary public offering (“SPO”), selling 25 million shares at $27 per share.
On September 19, 2022, a jury found Sotera liable for $363 million in damages, after determining that its sterilization services exposed communities surrounding its processing facilities to Ethylene Oxide (“EtO”) emissions and caused the plaintiff’s cancer. The jury cited the Company’s “willful and wanton” misconduct in not preventing toxic EtO emissions and failing to warn about the severe health hazard posed by its facilities. On this news, Sotera’s stock price fell $4.90, or 33.3%, to close at $9.83 per share on September 19, 2022, thereby injuring investors.
Then, on September 20, 2022, analysts at Goldman Sachs downgraded Sotera stock, noting a greater risk to Sotera in future EtO-related litigation due to facts that emerged in the trial and “possible bands of outcome being so open ended that it creates a material overhang on the stock for the foreseeable future.” On this news, Sotera’s stock price fell $1.63, or 16.6%, to close at $8.20 per share on September 20, 2022, thereby injuring investors further.
Then, on September 21, 2022, analysts at JP Morgan downgraded Sotera stock after finding that “investors are likely to price in this unprecedented ruling as a higher probability of a larger settlement or subsequent payouts of the 700+ remaining individual lawsuits, which [Sotera] could potentially not afford.” On this news, Sotera’s stock price fell $0.88, or 10.7%, to close at $7.32 per share on September 21, 2022 – 68.2% below the IPO price and 72.9% below the SPO price.
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If you purchased Sotera securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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