If you purchased or acquired securities in FMC between November 2, 2022 and October 30, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/FMC.
There is no cost or obligation to you.
NEW YORK, Nov. 19, 2023 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against FMC Corporation (“FMC” or the “Company”) (NYSE: FMC) and reminds investors of the January 8, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
The FMC class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that(i) FMC had lost key legal disputes over its patents in India and competitors were selling generic diamide products in India; (ii) FMC had misleadingly downplayed the effect of the China Patent Office’s rulings invalidating certain key FMC patents in the country; (iii) generic competitors to FMC in Brazil had won important regulatory approvals and could potentially sell generic diamides in the country as soon as the second half of 2023; (iv) numerous competitors were manufacturing and selling generic versions of FMC’s top selling insecticide product in India and China at much lower prices than being charged by FMC; and (v) FMC was not in a position to raise prices on its branded diamide products to increase its revenues or margins in the key markets of India, China, or Brazil.
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 the Company had concealed from investors. The Blue Orca Report emphasized that the products at issue, patented diamides (a class of insecticide), "account for almost 40% of FMC's. . . revenues" in the past year and an estimated "60+% of reported EBITDA" and that FMC had "concealed from investors that it [had] suffered a recent string of stunning legal defeats around the globe that have enabled competitors to now launch competing generics at prices up to 80% below the price of FMC's flagship insecticide product" and that "contrary to the Company's claims, FMC's process patents do not protect its flagship product from generic competition."
The Blue Orca Report included an analysis of legal proceedings and market conditions in India, China, and Brazil. In addition to identifying a range of market headwinds affecting FMC's prospects in such markets, the Blue Orca Report concluded that FMC and its executives repeatedly made false claims that legal victories had ensured Diamide patent protection for years to come, when, in fact, FMC's legal losses had 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.
Immediately following these revelations on September 7, 2023, the Company's share price dropped more than 7.4%, to close at $76.10 per share, representing approximately $630 million in investor losses, on high trading volume.
On October 23, 2023, FMC announced that it was again 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.
Finally, on October 30, 2023, FMC issued a press release announcing its financial results for the third quarter of 2023, including a 29% revenue decline in the quarter. FMC attributed the decline in part to lower customer demand in Brazil and a decline in sales in Asia, largely due to lower customer demand in India.
On this news, the price of FMC common stock fell from $57.96 per share on October 30, 2023 to close at $53.20 per share on October 31, 2023, a decline of $4.76 per share, or 8%, on heavy trading volume of over three million shares traded.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding FMC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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