Pomerantz Law Firm Files Class Action Against Dow Inc. Over Alleged Securities Violations

Pomerantz Law Firm Files Class Action Against Dow Inc.

Pomerantz LLP, one of the leading law firms specializing in corporate securities litigation, has filed a class action lawsuit against Dow Inc. (NYSE: DOW) and specific officers of the company. This significant legal move was initiated in the United States District Court for the Eastern District of Michigan, highlighted under docket number 25-cv-12744. The lawsuit represents all individuals and entities, excluding the defendants, who purchased or otherwise acquired Dow securities from January 30 to July 23, 2025, a period known as the "Class Period."

The class action seeks to recover damages purportedly caused by violations of federal securities laws under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, specifically concerning the company's misleading public statements. Investors who acquired securities during this time have until October 28, 2025, to make their case for being appointed as Lead Plaintiff for the class. Relevant details about the suit can be found on Pomerantz’s official website.

Dow Inc. is a prominent American materials science company, catering specifically to the packaging, infrastructure, mobility, and consumer sectors. With global operations divided into three key segments—Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings—Dow has historically positioned itself as a major player in its field.

The company has long maintained a robust dividend—a critical element for investor attraction and retention according to its Chief Executive Officer, Jim Fitterling. He has previously stated that a significant portion of Dow's shareholders rely heavily on the dividend, emphasizing its importance in the investment narrative. Despite facing challenges in the materials science sphere due to various external adversities, Dow's leadership has claimed that the company possesses the requisite financial resilience to maintain its attractive dividend yield.

However, during the Class Period, Dow’s executives are alleged to have made materially misleading representations about the company’s ability to withstand economic and tariff pressures. Onlookers note that the declared strength associated with Dow's operational strategies, including its so-called “differentiated portfolio” and its “cost-advantaged footprint,” were presented in a manner that exaggerated the true picture of the company’s financial health.

More critically, the lawsuit argues that Dow's public statements failed to adequately disclose the significant impact of ongoing macroeconomic challenges, such as competitive pricing pressures and diminishing global demand for its products. This apparent underreporting of adverse market conditions has raised serious concerns about transparency and accountability within Dow’s senior management.

A pivotal moment for Dow occurred on June 23, 2025, when BMO Capital downgraded its stock rating from “Market Perform” to “Underperform,” suggesting a sharp decline in market confidence. This downgrade was primarily attributed to persistent weaknesses in key market sectors, which subsequently resulted in a drop in Dow's share price.

The situation further deteriorated when Dow publicly announced its second-quarter financial results on July 24, 2025, reporting a significant non-GAAP loss per share of $0.42—a stark contrast to the projected loss that analysts had anticipated. Moreover, the company revealed a 7.3% decline in net sales, a reflection of the downturn across all operating segments.

In a surprise measure aimed at addressing its faltering financial landscape, Dow drastically slashed its dividend by 50%, reducing the payout from $0.70 to $0.35 per share. This drastic decision came as the company cited a need for financial flexibility amid a challenging macroeconomic environment, signaling a stark shift in its operational approach.

In the wake of these disclosures, Dow's stock suffered a major plunge, closing down 17.45% following the announcement of the dividend cut. This dramatic turn of events has ushered in heightened scrutiny from investors and legal experts alike, leading to the current class action suit spearheaded by Pomerantz LLP.

Pomerantz LLP has built a strong reputation over its extensive history, recognized as a pioneer in class action and securities litigation. Founded over 85 years ago by the esteemed Abraham L. Pomerantz, the firm has helped recover billions for victims of corporate malpractice, striving to uphold the rights of investors through their diligent legal strategies. Today's class action stands as a testament to Pomerantz’s commitment to addressing securities fraud and advocating for investor protections.

For any investors impacted during the Class Period, this class action presents an opportunity to seek legal recourse and ensure accountability from Dow Inc. and its officers. Interested parties can seek further guidance by contacting Pomerantz directly.