Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired FMC Corporation (NYSE: FMC) common stock between November 2, 2022 and October 20, 2023. FMC is an agricultural sciences company and chemical manufacturer specializing in the production of patented crop protection products.
What is this Case About: FMC Corporation (FMC) Misled Investors Regarding Patent Protection for its Flagship Products
According to the complaint, during the class period, defendants failed to disclose to investors that: (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; (2) the Company repeatedly 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; and (3) because of these issues Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The complaint alleges that on September 7, 2023, a report by Blue Orca Capital concluded that FMC and its executives repeatedly made false claims that legal victories ensured diamide patent protection for years to come, when, in fact, FMC’s legal losses resulted in a loss of patent protection for its flagship products and cleared the way for generic competition. In short, Defendants repeatedly falsely reassured investors that FMC had not gone over the patent cliff while, in truth, the Company was already in free fall. On this news, the Company's share price dropped over 7.4% to close at $76.10, representing approximately $630 million in investor losses.
Then, on October 23, 2023, FMC announced it was cutting its Q3, 2023 outlook and guidance for revenues for Q4 and FY 2024, projecting earnings well below the expectations of analysts, citing substantially lower sales volumes in Latin America, particularly Brazil. On this news, FMC’s stock price fell $8.83 per share, or 12.18%, to close at $58.12 per share on October 23, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against FMC Corporation. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 8, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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