Lowey Dannenberg Is Investigating Celanese Corporation

by | Mar 1, 2020 | securities | 0 comments

Lowey Dannenberg is investigating Celanese Corporation (“Celanese” or the “Company”) (NYSE: CE) and certain of its officers and/or directors for potential violation of federal securities laws or other unlawful business practices in connection with the Company’s subsidiaries and their potential involvement in anticompetitive conduct, which subjected the Company to regulatory scrutiny by the European Commission (“EU”). 

On January 30, 2020, the Company released its full year and fourth quarter financial results, missing analysts’ expectations and disappointing investors.  In its quarterly report, Celanese recorded GAAP diluted earnings per share of $0.35 and adjusted EPS of $1.99.  Celanese cited, among other things, a reserve related to a European Commission competition law investigation concerning certain Celanese subsidiaries.  Scott Richardson, the Company’s CFO, stated that the poor performance was caused by a $89 million reserve the Company booked “based on information received from the European Commission regarding its competition law investigation.”

Following the Company’s publication of its fourth quarter financial results, the price of the Company’s shares fell $6.99 per share, or 6%, to close at $103.50 per share on January 31, 2020.  The Company shares continue to tumble to this day, closing at $97.81 on February 25, 2020.   

Celanese’s Conduct Potentially Violates Federal Securities Laws

If you are a shareholder of Celanese who suffered a loss, we encourage you to contact attorney Andrea Farah of Lowey Dannenberg at (914) 733-7256 or afarah@lowey.com to learn more about this investigation or to discuss your options. For more information, you can also visit the investigation page on our website, lowey.com/securities.