#United States #New York #Securities Fraud #Pomerantz LLP #Celanese Corporation

Ongoing Investigation into Celanese Corporation

Pomerantz LLP, a renowned law firm specializing in class action litigation, has recently commenced an investigation into the claims made by investors of Celanese Corporation, traded under the New York Stock Exchange as CE. The primary concern revolves around allegations of securities fraud and questionable business practices allegedly engaged in by Celanese’s management, including its board members.

The investigation took root following Celanese's disappointing financial disclosures, particularly its press release dated November 4, 2024. According to this announcement, the company revealed its financial results for the third quarter of 2024, reporting earnings adjusted for non-recurring items at $2.44 per share. This figure significantly lagged behind analysts' predictions of $2.84 per share, raising immediate red flags among investors.

Additionally, the company reported revenue of $2.65 billion for the quarter—a 2.6% decrease from the previous year—which similarly fell short of the consensus forecast of $2.69 billion. Celanese's Chief Executive Officer stated during the earnings call that the company faced a “severely constrained demand environment,” particularly noting challenges in sectors such as automotive and industrial. This grim outlook spurred concerns about the company's future performance, as the CEO warned of expected declines in demand due to inventory destocking trends among major customers.

The fallout from these revelations was swift; the stock plummeted by $32.50, a staggering 26.32% decline, closing at $91.00 on November 5, 2024. This sharp drop prompted further scrutiny from both investors and analysts alike, seeking clarity on the company's underlying issues and the potential for recovery.

Not long after, another alarming announcement came on February 18, 2025, when Celanese reported its financial results for the fourth quarter and the entire fiscal year of 2024. The results were dire, revealing a full-year diluted loss per share of $13.86, alongside adjusted earnings per share at $8.37. Overall, the company recognized net sales of $10.3 billion for 2024, marking a 6% downturn compared to 2023, attributed to challenges such as weak demand in critical end markets like automotive, paints, and construction.

Following the disclosure, Celanese's stock experienced another significant drop, falling by $15.00—21.46%—to close at $54.91 on February 19, 2025. This downward trajectory has alarmed investors, raising questions about the company's operational decisions and the accuracy of its financial reporting practices.

Pomerantz LLP encourages those who may have sustained losses due to these developments to seek counsel. Investors can reach out to Danielle Peyton at Pomerantz by either emailing [email protected] or calling 646-581-9980, extension 7980, for more details on joining the class action.

Founded by the esteemed Abraham L. Pomerantz, the firm has a long-standing reputation for advocating shareholder rights and has successfully recovered substantial damages in similar cases, emphasizing the importance of investor vigilance and legal recourse in instances of corporate misconduct. The ongoing investigation aims to hold Celanese accountable if these securities fraud allegations prove valid, reinforcing the vital role law firms like Pomerantz play in ensuring corporate transparency and accountability.

For additional updates or insights into this investigation, interested parties are urged to stay informed through Pomerantz’s dedicated communications platforms.