LOS ANGELES, March 23, 2020 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors of the upcoming April 6, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired of Sasol Limited (“Sasol” or the Company”) (NYSE: SSL) securities between March 10, 2015 and January 13, 2020 inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On October 27, 2014, Sasol announced the construction of an $8.1 billion ethane cracker and derivatives complex called the Lake Charles Chemicals Project (“LCCP”).
On June 6, 2016, Sasol reported “that the expected total capital expenditure for the [LCCP] could increase up to US $11 billion, including site infrastructure and utility improvements.” Moreover, the Company disclosed that “the estimated LCCP capital cost and extended schedule will reduce the expected project returns by approximately the same amount as the Company’s lower long-term price assumptions.”
On this news, Sasol’s American depositary receipt (“ADR”) price fell $3.53 per share, or approximately 11%, to close at $28.60 per share on June 6, 2016, thereby injuring investors.
On May 22, 2019, during pre-market hours, Sasol revealed that “the cost estimate for the LCCP has been revised to a range of $12.6 to $12,9 billion which includes a contingency of $300 million.”
On this news, Sasol’s ADR price fell $4.50 per share, or nearly 15%, to close at $25.64 per share on May 22, 2019, thereby injuring investors further.
On August 16, 2019, during pre-market hours, Sasol postponed its full year 2019 financial results because of “possible LCCP control weaknesses.”
On this news, Sasol’s ADR price fell $0.74 per share, or over 4%, to close at $17.67 per share on August 16, 2019, thereby injuring investors further.
On October 28, 2019, Sasol disclosed that there were “errors, omissions, and inaccuracies in the [LCCP] cost estimate” and that the highest level of management had engaged in a number of unethical and improper reporting activities. Sasol also announced the resignation of, inter alia, its Joint Presidents and Chief Executive Officers (“CEOs”) and Senior Vice Presidents and others previously in charge of the LCCP.
On January 14, 2020, Sasol confirmed “an explosion and fire at its LCCP low-density polyethylene (LDPE) unit.” Sasol stated that “[t]he unit was in the final stages of commissioning and startup when the incident occurred.”
On this news, Sasol’s ADR price fell $1.70 per share, or nearly 8%, over the following two trading days to close at $19.99 per share on January 15, 2020, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Sasol had conducted insufficient due diligence into, and failed to account for multiple issues with, the LCCP, as well as the true cost of the project; (2) that construction and operation of the LCCP was consequently plagued by control weaknesses, delays, rising costs, and technical issues; (3) that these issues were exacerbated by Sasol’s top-level management, who engaged in improper and unethical behavior with respect to financial reporting for the LCCP and the project’s oversight; (4) that all of the foregoing was reasonably likely to render the LCCP significantly more expensive than disclosed and negatively impact the Company’s financial results; and (5) that as a result, the Company’s public statements were materially false and misleading at all relevant times.
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If you purchased or otherwise acquired Sasol securities during the Class Period, you may move the Court no later than April 6, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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If successful, what will this do to the SOL share price?
