Company: Livent Corporation
Class Period: October 11, 2018 — May 22, 2019
Court: U.S.D.C. - Eastern District of Pennsylvania
Deadline: July 22, 2019
A shareholder class action complaint has been filed against Livent Corporation (“Livent”) on behalf of investors who purchased shares of the Company’s stock pursuant or traceable to the Company’s initial public offering of common stock on or around October 11, 2018.
Livent produces and distributes lithium chemicals. The Company’s primary products are battery-grade lithium hydroxide, butyllithium, and high purity lithium metal. The Company purports to focus on supplying high performance lithium compounds to the electric vehicle battery market and to maintain its position as a leading global producer of butyllithium and highpurity lithium metal.
On or about October 11, 2018, Livent completed its IPO of common stock, selling 23 million shares of stock to investors at a price of $17.00 per share.
According to the complaint, the offering documents prepared in connection with Livent’s IPO were false and misleading, and failed to state: (1) that a supply contract with Nemaska Lithium Inc. had been terminated; (2) that, as a result, the Company would be forced to fulfill its customer contracts using alternative vendors at reduced revenues and lower margins; (3) that the Company had a long-standing contract to supply lithium hydroxide to a customer at a much lower price than any of the Company’s existing contracts; (4) that the Company’s margins were squeezed due to the customer’s increased orders; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On February 11, 2019, Livent released its fourth quarter 2018 financial results that missed top line sales targets, citing difficulties negotiating contracts with existing customers. On this news, Livent’s share price fell $0.57 per share, over 4% in value, to close at $12.55 per share on February 12, 2019.
Then, on May 8, 2019, the Company announced disappointing financial results for first quarter of 2019, citing further customer issues. On this news, Livent’s share price fell an additional $1.70 per share, nearly 16% in value, to close at $9.03 per share on May 8, 2019.
Livent investors are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the form on this page, to receive additional information about this action and their legal rights and options.