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FMC.US
id: 1497
FMC Corporation (FMC) Inventory Management and Revenue Misrepresentation Case
E.D. Pennsylvania
Court2:25-cv-00771
Case number11/16/2023
Class period Start02/04/2025
Class period End04/14/2025
Lead Plaintiff motion deadline- $FMC investors filed a lawsuit against FMC Corporation, alleging the company misled shareholders by assuring that its inventory management strategy was effectively supporting revenue growth.
- On February 4, 2025, FMC reported disappointing Q4 2024 results, revealing excess inventory in multiple regions and a failure to meet revenue guidance. Following this news, $FMC dropped 33.5%.
Case Details:
Between November 16, 2023, and February 4, 2025, FMC repeatedly assured investors that its channel inventory management and pricing strategy were effectively supporting revenue growth. The company projected steady sales growth, emphasizing its ability to manage pricing pressures and maintain strong demand across global markets.
However, FMC failed to disclose significant challenges in its sales strategy. Instead of adjusting prices to stay competitive, FMC walked away from sales opportunities, leading to lower-than-expected demand. This caused excess product buildup in distribution channels, particularly in Latin America, Asia, Canada, and Eastern Europe.
On February 4, 2025, FMC missed its full-year revenue guidance and admitted that customers across multiple regions were holding historically low inventory levels, weakening demand for its products. CEO Pierre Brondeau further acknowledged that the company needed to reduce inventory levels far beyond prior expectations due to miscalculations in its sales strategy.
Following this announcement, $FMC stock dropped 33.5%, as investors reacted to the company’s failure to manage pricing competition and inventory risks.
Based on these events, $FMC investors filed a lawsuit against FMC Corporation, claiming the company:
- It misled investors about the effectiveness of its inventory management strategy.
- It downplayed the risks of declining demand and the financial impact of excess inventory buildup.
Investors believe FMC misrepresented its revenue outlook and ability to manage sales demand.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/05/2025
Filing date
02/13/2025
Lead Plaintiff Deadline
04/14/2025