Pomerantz Law Firm Launches Class Action Against Dow Inc. Over Security Violations
Class Action Lawsuit Filed Against Dow Inc. by Pomerantz LLP
On October 23, 2025, Pomerantz LLP announced the filing of a class action lawsuit against Dow Inc. (NYSE: DOW) and several of its executives. The lawsuit, launched in the United States District Court for the Eastern District of Michigan, pertains to alleged violations of federal securities laws affecting investors who purchased or acquired Dow securities from January 30, 2025, to July 23, 2025. This lawsuit claims to rectify damages incurred due to misleading statements and failures to disclose significant adverse conditions affecting the company.
Background of the Lawsuit
The class action seeks to represent individuals and entities apart from the defendants, emphasizing that it aims to recover losses stemming from Dow's alleged misrepresentations. Investors have until October 28, 2025, to request to be appointed as Lead Plaintiff. This step is crucial for those affected to actively participate in the potentially lengthy litigation process.
To read the full complaint or to discuss this action, investors are encouraged to contact Danielle Peyton at Pomerantz LLP. The infrastructure for submitting claims and further inquiries suggests a robust engagement strategy by the law firm to ensure the rights of affected shareholders.
Dow Inc: Company Overview
Dow Inc. is known for its role in the materials science industry, catering to various sectors including packaging, infrastructure, and consumer applications. The company operates through six global business units, emphasizing a diverse product portfolio in multiple markets. Historically, Dow has attracted investors with its competitive dividend, highlighted by statements from CEO Jim Fitterling about its significance to the company's investment core.
However, amidst a downturn in the materials science sector and rising tariffs, the company’s previous assurances have come under scrutiny. Defendants reportedly made claims about Dow's capabilities to navigate economic challenges while sustaining its financial commitments, including dividends, which are crucial for shareholder trust.
Allegations of Misleading Statements
The core of the allegations involves materially false and misleading statements made by Dow's executives regarding the company's operational health. Specifically, they failed to adequately disclose the impacts of macroeconomic factors such as trade tariffs, declining global sales, and a saturated market on their financial stability. Prior to the class action, events unfolded that would lead to severe stock price depreciation, which echoes the findings of the lawsuit.
A critical turning point occurred on June 23, 2025, when BMO Capital announced a downgrade of Dow’s stock from 'Market Perform' to 'Underperform', citing ongoing weaknesses in essential markets. This resulted in a significant one-day drop in stock value. Moreover, the following month, Dow released its second-quarter financial results that starkly contradicted analysts’ expectations, marking a severe loss per share significantly higher than prior estimations, which raised alarms among investors about its dividend sustainability.
Impact on Investors
The aftermath of Dow's financial reporting was immediate, with the stock price plunging further as the company announced a dividend cut. Such drastic measures indicate not only the company's financial struggles but also the potential ramifications for investors who relied on dividend income.
Pomerantz LLP's complaint underscores the potential breaches of fiduciary duty and securities laws that may have aggravated losses for investors in the class period. Legal representatives are prepared to navigate the complexities of the case, advocating for the rights of individuals affected by Dow's operational communications.
Pomerantz LLP: A Leader in Class Action Litigation
Pomerantz LLP, with a legacy spanning over 85 years, stands as a respected name in corporate securities and antitrust litigation. Founded by Abraham L. Pomerantz, a pioneer in class action law, the firm is noted for its commitment to holding corporations accountable for misconduct in the financial sector. Legal precedent shows Pomerantz's track record in recovering substantial damages for class action members, making them an authoritative choice for navigating the current growing complexities within corporate America.
As the legal landscape continues to evolve, the class action against Dow Inc. will unfold further, with outcomes closely monitored by investors and analysts alike. Those who believe they have been impacted by these events are encouraged to stay informed about their rights and options moving forward. The upcoming weeks are critical in determining both the future of Dow Inc. and the potential recovery for its investors.