NEW YORK, Nov. 10, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired FMC Corporation (“FMC” or the “Company”) (NYSE: FMC) securities between November 2, 2022 and October 20, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that FMC is an agricultural sciences company and chemical manufacturer specializing in the production of patented crop protection products. The Complaint further alleges that intellectual property and patent protections are a critical component of FMC's business, particularly when it comes to generating earnings and maintaining market share in key markets abroad, including India, China, and Brazil. The Complaint also alleges that FMC repeatedly offered investors optimistic projections, predicated, in part, on its progress in key markets overseas as FMC concealed legal losses in key markets throughout 2023.
The Complaint alleges that the truth began to emerge on July 10, 2023, when FMC announced that it was cutting its revenue projections for the second quarter and fiscal year 2023. The Complaint further alleges that FMC announced that "the revised guidance is driven by substantially lower-than-expected volumes due to an abrupt and significant reduction in inventory by channel partners, which only became evident towards the end of May and continued through the remainder of the quarter in North America, Latin America and EMEA."
Following this news, the Complaint alleges that FMC's stock price fell $11.62 per share, or 11.14%, to close at $92.63 per share on July 10, 2023.
The Complaint further alleges that on September 7, 2023, Blue Orca Capital published a report alleging that FMC and its executives had made a series of false statements about the status of patent protections for FMC's flagship products following legal defeats in India, China, and Brazil that FMC had concealed from investors. The Complaint also alleges that the Blue Orca Capital report further claimed that FMC falsely represented that it did not and would not face generic competition in key markets until 2026 at the earliest.
Following this news, the Complaint also alleges that FMC's stock price fell $6.09 per share, more than 7.4%, to close at $76.10 per share, representing approximately $630 million in investor losses, on high trading volume.
The Complaint further alleges that on October 23, 2023, FMC announced that it was cutting its third quarter 2023 outlook and guidance for revenues for the fourth quarter and fiscal year 2024, projecting earnings well below the expectations of analysts, and citing substantially lower sales volumes in Latin America.
Following this news, the Complaint alleges that FMC's stock price fell $8.83 per share, or 12.18%, to close at $58.12 per share on October 23, 2023.
The Complaint 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, the Complaint alleges that Defendants failed to disclose to investors: (1) the diminishment of patent protection for FMC’s flagship products following legal defeats in key markets including India, China, and Brazil had opened the door to increased competition from generics; and (2) the Company repeatedly allegedly mislead investors about the status of such proceedings and falsely claimed that it did not and would not face generic competition in key markets until 2026 at the earliest.
Investors who purchased or otherwise acquired shares of FMC should contact the Firm prior to the January 8, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
