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Livent Corporation – Class Action Filed on Behalf of LTHM Investors

Livent Corporation – Class Action Filed on Behalf of LTHM Investors

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Kehoe Law Firm, P.C. is investigating claims on behalf of investors of Livent Corporation (“Livent” or the “Company”).  The investigation concerns whether Livent (NYSE: LTHM) and certain officers and/or directors engaged in securities fraud or other unlawful business practices. 

On May 22, 2019, a securities class action lawsuit was filed on behalf of individuals who purchased, or otherwise acquired, Livent securities pursuant and/or traceable to the registration statement and prospectus issued in connection with Livent’s October 2018 initial public offering (“IPO”).  The class action lawsuit alleges that the Defendants violated the Securities Act of 1933.

Livent investors have until July 22, 2019 to move the Court to seek appointment as lead plaintiff in the securities class action.  Livent shareholders who have suffered losses are encouraged to click Join a Securities Class Action or contact either John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the Livent investigation or participating in the class action lawsuit. 

According to the class action complaint:

In October 2018, Livent completed its initial public offering (“IPO”), selling 23 million shares of common stock priced at $17.00 per share.  Livent received $369 million from the IPO, net of underwriting discounts and commissions.

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 stock price fell $0.57 per share, over 4%, to close at $12.55 per share on February 12, 2019.

On May 8, 2019, Livent announced disappointing financial results for the first quarter of 2019, citing further customer issues.

On this news, Livent’s stock price fell $1.70 per share, nearly 16%, to close at $9.03 per share on May 8, 2019.

The class action complaint alleges that Livent’s IPO Registration Statement was false and misleading and omitted to state material adverse facts. Specifically, the Livent Defendants failed to disclose to investors: (1) that a supply contract with Nemaska Lithium Inc. had been terminated; (2) that, as a result, Livent would be forced to fulfill its customer contracts using alternative vendors at reduced revenues and lower margins; (3) that Livent had a long-standing contract to supply lithium hydroxide to a customer at a much lower price than any of Livent’s existing contracts; (4) that Livent’s margins were squeezed due to the customer’s increased orders; and (5) that, as a result of the foregoing, the Livent Defendants’ positive statements about Livent’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

Livent shareholders who suffered losses are encouraged to click Join a Securities Class Action or contact either John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the Livent investigation or participating in the class action lawsuit.

Kehoe Law Firm, P.C.