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Ferroglobe plc

28 days left to seek lead plaintiff status

Case Summary

Company Name
Ferroglobe plc
Stock Symbol
GSM
Class Period
August 21, 2018 to November 26, 2018
Motion Deadline
March 23, 2019
Court
Southern District of New York

The complaint charges Ferroglobe and certain of its officers with violations of the Securities Exchange Act of 1934.  Ferroglobe produces silicon metal, silicon-based alloys and manganese-based alloys and sells products such as aluminum, silicone compounds, automotive parts, photovoltaic cells, electronic semiconductors and steel.

The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse information about the Company’s business, operations, and prospects.  Specifically, defendants failed to disclose that there was excess supply of the Company’s products, that demand for the Company’s products was declining, and that, as a consequence, the pricing of the Company’s products would be materially impacted.  As a result of this adverse information being withheld from the market, Ferroglobe securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $8.50 per share.

Then on November 26, 2018, the Company reported a net loss of $2.9 million for the third quarter of 2018, compared to a net profit of $66.0 million the prior quarter.  On a conference call the next day, defendants stated that “the most significant driver of the [third quarter] results was reduced pricing . . . , the impact of customers stocking up in anticipation of the trade cases, and availability of aluminum scrap . . . , which is now burdened by a 25% tariff on imports from the US into China.”  On this news, the Company’s share price fell $2.97 per share, or more than 62%, to close at $1.80 per share on November 27, 2018.

Class Period: August 21, 2018 - November 26, 2018
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