The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against GrafTech International Ltd. (EAF)

The Law Offices of Frank R. Cruz reminds investors of the upcoming March 25, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired GrafTech International Ltd. (“GrafTech” or the “Company”) (NYSE: EAF) common stock between February 8, 2019 and August 3, 2023, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On September 16, 2022, after the market closed, GrafTech disclosed that operations had been temporarily suspended at its graphite electrode manufacturing facility after an inspection by the State Attorney’s Office for the Secretary of the Environment for the State of Nuevo León. The Company’s International operating license in Mexico was also determined to be no longer in effect. On this news, GrafTech’s stock fell $0.45, or 8.5%, to close at $4.85 on September 19, 2022, thereby injuring investors.

Then, on April 28, 2023, GrafTech released its first quarter 2023 financial results, revealing that sales had declined 62% compared to the previous year, reporting a net loss of over $7 million compared to a net income of $124 million the previous year. On this news, GrafTech’s stock price fell $0.47, or 9.9%, over the next two consecutive trading days to close at $4.25 per share on May 1, 2023.

Then, on August 4, 2023, GrafTech released its second quarter 2023 financial results, reporting a sales decline of 49% and a net loss of $8 million as the Company continued to “recover” from the effects of the Monterrey facility shutdown. On this news, GrafTech’s stock price fell $1.18, or 22.6%, to close at $4.05 per share on August 4, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that GrafTech’s manufacturing operations in Monterrey, Mexico had for decades chronically contaminated neighboring communities with harmful carcinogenic gasses and particulate matter; (2) that GrafTech had signed agreements with local authorities committing itself to improving the environmental performance of its Monterrey facility, but repeatedly failed to honor these commitments; (3) that GrafTech had been repeatedly warned over an approximately 30-year period regarding its wanton disregard for the environment and health and well-being of people near its operations in Monterrey, Mexico; (4) that GrafTech’s operations in Monterrey, Mexico were not in compliance with applicable environmental laws and regulations; (5) that the Company had failed to adequately remediate the environmental problems caused by the Monterrey facility following the 2019 administrative proceeding conducted by the Department of Sustainable Development of the State of Nuevo León; (6) that the government of Apodaca had sought intervention from the State of Nuevo León authorities to curtail and prevent the adverse environmental impacts and noncompliance with environmental laws and regulations caused by the Monterrey facility; (7) that GrafTech’s purported cost leadership was achieved in substantial part by failing to implement appropriate and effective environmental safeguards at its manufacturing facility in Monterrey, Mexico; (8) that GrafTech’s capital expenditures and/or related operational projects were woefully insufficient to adequately address the harm that the Company’s operations in Monterrey, Mexico had inflicted on the environment and people within the neighboring communities; (9) that as a result of the foregoing, GrafTech was acutely exposed to undisclosed material risks that the Company’s manufacturing operations in Monterrey, Mexico would be severely disrupted by government action or enforcement; (10) that as a result, GrafTech was acutely exposed to undisclosed material risks that its supplies of pin stock and graphite electrodes would be withdrawn and/or materially diminished, thereby materially harming the Company’s business, operations, reputation, and financial results; and (11) that as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired GrafTech common stock during the Class Period, you may move the Court no later than March 25, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, 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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