Shareholders with $150,000 losses or more are encouraged to contact the firm.
The Law Offices of Frank R. Cruz reminds investors of the upcoming March 27, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Sotera Health Company (“Sotera” or the “Company”) (NASDAQ: SHC) common stock: (a) pursuant and/or traceable to the Company’s November 2020 initial public offering (“IPO”); (b) pursuant and/or traceable to the Company’s March 2021 secondary public offering (“SPO”); and/or (c) between November 20, 2020 and September 19, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On or about November 20, 2020, Sotera conducted its IPO, selling 53.59 million shares of common stock at $23 per share. On or about March 18, 2021, the Company conducted its SPO, selling 25 million shares at $27 per share.
On September 19, 2022, a jury found Sotera liable for $363 million in damages, after determining that its sterilization services exposed communities surrounding its processing facilities to Ethylene Oxide (“EtO”) emissions and caused the plaintiff’s cancer. The jury cited the Company’s “willful and wanton” misconduct in not preventing toxic EtO emissions and failing to warn about the severe health hazard posed by its facilities. On this news, Sotera’s stock price fell $4.90, or 33.3%, to close at $9.83 per share on September 19, 2022, thereby injuring investors.
Then, on September 20, 2022, analysts at Goldman Sachs downgraded Sotera stock, noting a greater risk to Sotera in future EtO-related litigation due to facts that emerged in the trial and “possible bands of outcome being so open ended that it creates a material overhang on the stock for the foreseeable future.” On this news, Sotera’s stock price fell $1.63, or 16.6%, to close at $8.20 per share on September 20, 2022, thereby injuring investors further.
Then, on September 21, 2022, analysts at JP Morgan downgraded Sotera stock after finding that “investors are likely to price in this unprecedented ruling as a higher probability of a larger settlement or subsequent payouts of the 700+ remaining individual lawsuits, which [Sotera] could potentially not afford.” On this news, Sotera’s stock price fell $0.88, or 10.7%, to close at $7.32 per share on September 21, 2022 – 68.2% below the IPO price and 72.9% below the SPO price.
The complaint filed in this class action alleges that 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 that for years the Company failed to employ adequate and effective emissions control systems at its sterilization facilities, allowing dangerous amounts of toxic EtO fumes to pollute the air surrounding those facilities and exposing communities to significantly increased cancer risks.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Sotera common stock during the Class Period, you may move the Court no later than March 27, 2023 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 firstname.lastname@example.org, 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.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.