Key Takeaways:
- Labaton Keller Sucharow LLP has filed a securities class action lawsuit against FMC Corporation (NYSE: FMC) on behalf of Macomb County Employees’ Retirement System and Macomb County Retirement Health Care Fund.
- The lawsuit alleges that FMC misrepresented inventory levels and restructuring progress, leading to inflated stock prices.
- The case is related to a previously filed lawsuit, Mohammed v. FMC Corporation, and both actions seek to represent investors who purchased FMC common stock between November 16, 2023, and February 4, 2025.
- FMC’s stock fell 33.5% following its earnings report on February 4, 2025, after disclosing weaker-than-expected demand.
- Investors seeking to be Lead Plaintiff must file a motion by April 14, 2025.
Securities Class Action Lawsuit Filed Against FMC
Labaton Keller Sucharow LLP (“Labaton”) has filed a securities class action lawsuit against FMC Corporation, a Philadelphia-based agricultural sciences company, on behalf of the Macomb County Employees’ Retirement System and the Macomb County Retirement Health Care Fund. The case, Macomb County Employees’ Retirement System v. FMC Corporation (No. 25-cv-00815, E.D. Pa.), was filed on February 14, 2025, and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
The lawsuit covers all investors who purchased or acquired FMC common stock between November 16, 2023, and February 4, 2025.
Allegations Against FMC
According to the Complaint, FMC made misleading statements and omissions related to its restructuring efforts under Project Focus, a program aimed at optimizing inventory levels and reducing manufacturing costs. Specifically, the lawsuit claims that FMC failed to disclose:
- Project Focus was not achieving its objective of significantly lowering FMC inventory in its distribution network.
- FMC’s channel inventories were worsening rather than stabilizing.
- The initiative lagged in reducing manufacturing costs as planned.
- Cost-plus pricing agreements with key distributors would negatively impact FMC’s near-term revenues and profits.
- FMC’s risk disclosures were misleading, as they misrepresented known financial difficulties as mere risks rather than existing challenges.
- As a result, investors were misled about the company’s true financial health and future prospects.
FMC Stock Decline Following Q4 2024 Results
The truth about FMC’s financial struggles came to light on February 4, 2025, when the company reported fourth-quarter revenue $90 million below expectations. FMC acknowledged that customer demand was weaker than anticipated, with many customers holding significantly less inventory than in previous years.
The market reacted sharply to this news:
- FMC’s stock price dropped $18.12 per share, or 33.5%, closing at $35.92 on February 5, 2025.
- The company also issued a disappointing 2025 financial outlook, citing continued inventory reductions by distributors.
Related Lawsuit Against FMC
This new Complaint is related to a previously filed lawsuit, Mohammed v. FMC Corporation (No. 25-cv-00771, E.D. Pa.), which was filed on February 13, 2025. Both cases seek to represent investors impacted by FMC’s alleged misstatements during the Class Period.
