FMC Corporation (FMC) Accused of Misleading Investors About Sales and Inventory

Core Viewpoint - FMC Corporation is facing a class action lawsuit for allegedly misleading investors about its business prospects, resulting in a significant decline in stock price [1][5]. Group 1: Lawsuit Details - The class action lawsuit, titled Mohammed v. FMC Corporation, was filed in the Eastern District of Pennsylvania and seeks to represent individuals and entities who purchased FMC securities between November 16, 2023, and February 4, 2025 [2]. - Plaintiffs claim that FMC made false and misleading statements and failed to disclose critical information regarding the company's performance [2][5]. - The lawsuit alleges that FMC misrepresented the progress of its channel management initiatives and opted to abandon competitive pricing strategies, leading to inflated inventory levels in various regions [3]. Group 2: Financial Impact - On February 4, 2025, FMC reported its fourth-quarter 2024 financial results, missing its previously announced full fiscal year revenue guidance and consensus estimates [4]. - The company attributed the revenue shortfall to lower-than-expected growth, stating that customers sought to hold significantly less inventory than historically [4]. - Following this announcement, FMC's stock price dropped by more than 33% [4]. Group 3: Allegations and Investigations - Plaintiffs allege that the disclosures revealed the true extent of FMC's struggles, which had been concealed from investors, causing significant financial harm when the truth was revealed [5]. - Hagens Berman, a law firm investigating the claims, is looking into whether FMC misrepresented its channel management initiatives [6].