A lawsuit was filed on behalf of investors in Sotera Health Company (NASDAQ:SHC) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 02/07/2023 -- An investor, who purchased shares of Sotera Health Company (NASDAQ: SHC), filed a lawsuit over alleged violations of Federal Securities Laws by Sotera Health Company ("Sotera" or the "Company"), certain of the Company's current and former senior executives, members of the Company's Board of Directors, Sotera's private equity shareholders, and the underwriters of the November 20, 2020, initial public offering ("IPO") and March 18, 2021, secondary public offering ("SPO") of Sotera stock in connection with certain allegedly false and misleading statements made in connection with the Company's IPO conducted on or around November 20, 2020, in connection with the Company's SPO conducted on or around March 18, 2021, and between November 20, 2020 and September 19, 2022.
Investors who purchased shares of Sotera Health Company (NASDAQ: SHC) have certain options and for certain investors are short and strict deadlines running. Deadline: March 27, 2023. NASDAQ: SHC investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Broadview Heights, OH based Sotera Health Company provides sterilization, and lab testing and advisory services in the United States, Canada, Europe, and internationally. On September 19, 2022, news outlets reported that a jury found Sotera Health Company's Sterigenics business unit liable for a role in causing a woman's breast cancer and awarded the plaintiff $363 million. The lawsuit specifically alleged that carcinogenic emissions from a Sterigenics plant near the plaintiff's home caused her cancer. The jury cited Sotera Health Company's and Sterigenics' "willful and wanton" misconduct in not preventing toxic EtO emissions, and failing to warn about the severe health hazard posed by the Company's Illinois facility.
Later that day, after the market closed, news reports revealed that the jury verdict in the above stated case was supported by "[e]mails and corporate documents" that showed "the companies knew long ago" about the toxic effects of EtO. Despite that knowledge, Sotera Health Company allegedly "delayed installing pollution-control equipment and attempted to undermine federal regulations that would require costly improvements at sterilization facilities."
On September 20, 2022, analysts at Goldman Sachs downgraded Sotera Health Company's stock, noting a significantly greater risk to Sotera in future EtO litigation due to facts that emerged in the above stated case and "possible bands of outcome being so open ended that it creates a material overhang on the stock for the foreseeable future."
On September 21, 2022, analysts at JP Morgan downgraded Sotera Health Company's 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."
Shares of Sotera Health Company (NASDAQ: SHC) declined from $20.41 per share on August 16, 2022, to as low as $7.04 per share on September 27, 2022.
The plaintiff alleges on behalf of purchasers of Sotera Health Company (NASDAQ: SHC) common shares who purchased or otherwise acquired Sotera common stock pursuant and/or traceable to the Company's IPO conducted on or around November 20, 2020, pursuant and/or traceable to the Company's SPO conducted on or around March 18, 2021 and/or between November 20, 2020 and September 19, 2022, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between November 20, 2020 and September 19, 2022, and in connection with the IPO and the SPO, Sotera Health Company made false and misleading representations concerning its emissions control systems and exposure to liability from lawsuits for the Company's failure to limit harmful EtO emissions, that the Company represented that it had "a proactive [environmental, health and safety] program and a culture of safety and quality.", that in addition, Sotera Health Company stated that it employed adequate and effective safeguards to control EtO emissions, and that Sotera Health Company and its executives vehemently denied allegations that the Company's EtO emissions from its sterilization facilities caused cancer and other severe health issues in people living in the communities near those facilities.
Those who purchased shares of Sotera Health Company (NASDAQ: SHC) have certain options and should contact the Shareholders Foundation.
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About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.