SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of sellers of Arconic Corporation (NYSE: ARNC) (“Arconic” or the “Company”) securities between April 19, 2022 through May 3, 2023 (the “Class Period”), charging the Company and certain senior executives and directors with violations of the federal securities laws (collectively, “Defendants”).
Arconic investors have until March 31, 2025 to seek appointment as lead plaintiff of the Arconic class action lawsuit.
If you sold Arconic securities between April 19, 2022 through May 3, 2023, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/arconic/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Arconic is a provider of aluminum sheets, plates, and extrusions, as well as architectural products to the ground transportation, aerospace, building and construction, industrial and packaging end markets.
The Arconic lawsuit alleges that Defendants failed to disclose offers to purchase all of the outstanding shares of Arconic common stock at a material premium far above the Company’s then-current stock price, while at the same time repurchasing millions of shares of Arconic common stock through stock buyback programs at prices below the offer price. These omissions of material non-public information artificially deflated the price of Arconic common stock. Arconic had an obligation to either disclose that it had received a formal acquisition offer from Apollo Global Management, Inc. (“Apollo”) or abstain from trading in its own securities.
In April 2022, Arconic received an unsolicited non-public offer from Apollo to purchase all of the outstanding shares of Arconic at a price between $34 and $36 per share. Arconic rejected Apollo’s offer, but Apollo continued to demonstrate interest in an acquisition of Arconic. Apollo partnered with Irenic Capital Management LP (“Irenic”) concerning the potential acquisition of Arconic starting in May 2022. From May 2022 through November 2022, Apollo, Irenic, and Arconic had discussions concerning a potential acquisition of Arconic, but these contacts did not result in the submission of any new proposals for an acquisition of Arconic. During the period June 1, 2022 through August 31, 2022, Arconic repurchased 4,357,690 shares of its common stock on public markets for a total cost of $122,943,904 and at an average price of $28.21 per share, significantly below Apollo’s offer of $34 to $36 per share.
On November 28, 2022, Apollo informed Arconic that it was considering submitting a new proposal for an acquisition of Arconic at a meaningful premium to Arconic’s stock price. On December 12, 2022, Apollo submitted a revised proposal to acquire Arconic in an all-cash transaction at a price of $30.00 per share, a meaningful premium to the price of Arconic’s common stock, which closed on December 12, 2022 at $22.57 per share. Arconic thereafter negotiated and engaged with Apollo. However, Arconic continued repurchase its own stock at prices materially below Apollo’s $30 per share offer. From November 2022 to January 2023, Arconic repurchased over 2 million shares of Arconic common stock at an average price of $22.32 per share.
On February 28, 2023, at approximately 2:00 p.m. Eastern Time, The Wall Street Journal reported that Apollo had submitted a bid at an unspecific price to acquire Arconic and that Arconic’s advisors had reached out to other potential acquirors. In response, the price of Arconic common stock increased $4.68 per share, or 21.5%, from its price immediately before the WSJ report of $21.76 per share to a closing price on February 28, 2023 of $26.44 per share.
On May 4, 2023, during pre-market hours, Arconic announced that it had entered into an agreement to be acquired by Apollo in an all-cash transaction at $30.00 per share. In response, the price of Arconic common stock increased $6.38 per share, or 28.3%, from a closing price on May 3, 2023 of $22.55 per share to a closing price on May 4, 2023 of $28.93 per share.
The merger eventually closed on August 18, 2023, with Apollo acquiring Arconic for $30 per share.
About DiCello Levitt
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