NEW YORK, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of GrafTech International Ltd. (NYSE: EAF)?
- Did you purchase your shares between February 8, 2019 and August 3, 2023, inclusive?
- Did you lose money in your investment in GrafTech International Ltd.?
- Do you want to discuss your rights?
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of GrafTech International Ltd. (“GrafTech or the “Company”) (NYSE: EAF) between February 8, 2019 and August 3, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of Ohio and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired GrafTech common stock, and/or would like to discuss your legal rights and options please visit GrafTech International Ltd. Shareholder Class Action Lawsuit or contact paralegal Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
According to the Complaint, GrafTech is a global manufacturer of graphite electrode products that are used in the production of electric arc furnace (“EAF”) steel – a purportedly greener alternative to traditional steelmaking methods. In contrast to conventional blast furnaces, which rely directly on coal, natural gas, and oil, EAF utilizes graphite electrodes to conduct electricity and to generate sufficient heat to melt scrap metal, iron ore, or other raw materials used to produce steel or other metals. GrafTech’s customers are comprised of steel manufacturers that use EAF to produce steel.
Throughout the Class Period, Among other things, Defendants failed to disclose to investors that: (i) GrafTech’s manufacturing operations in Monterrey, Mexico had for decades chronically contaminated neighboring communities with harmful carcinogenic gasses and particulate matter; (ii) 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; and (iii) as a result of the above, GrafTech was acutely exposed to undisclosed material risks that GrafTech’s manufacturing operations in Monterrey, Mexico would be severely disrupted by government action or enforcement.
On September 16, 2022, GrafTech unexpectedly revealed that GrafTech’s critical manufacturing facility in Monterrey, Mexico had been shut down by regulators following inspections by the State Attorney’s office for the Secretary of Environment and the Ministry of the Environment. This information was of critical importance to investors as the Monterrey facility was responsible for manufacturing 30% of GrafTech’s overall graphite electrode output and 100% of its pin stock.
Then, on August 4, 2023, GrafTech issued a press release disclosing the Company’s financial and operational results for the quarter ended June 30, 2023 (“2Q23 Release”). The 2Q23 Release reported that sales declined 49% compared to the second quarter of 2022 as the Company continued to “recover” from the effects of the Monterrey facility shutdown in 2022. As a result of the substantial decline in net sales, the 2Q23 Release reported a net loss of $8 million compared to $115 million in net income the Company reported in the second quarter of 2022. On the corresponding conference call, defendant Marcel Kessler, CO for part of the Class Period, described the Monterrey suspension as the “key driver” of the underperformance and revealed that GrafTech’s ability to secure customer contracts would continue to be indirectly impacted in the second half of fiscal 2023.
On this news, GrafTech’s stock price fell $1.18 per share, or 22.56%, to close at $4.05 per share on August 4, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than March 25, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired GrafTech common stock, and/or would like to discuss your legal rights and options please visit GrafTech International Ltd. Shareholder Class Action Lawsuit or contact paralegal Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2024 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Paralegal
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
