#United States #New York #Class Action #Pomerantz LLP #Dow Inc.

Pomerantz Law Firm Files Class Action Against Dow Inc.

On September 18, 2025, Pomerantz LLP, a leading law firm known for its commitment to protecting investors, announced the initiation of a class action lawsuit against Dow Inc. and select officers. The lawsuit, filed in the United States District Court for the Eastern District of Michigan, pertains to a class of individuals and entities who purchased or acquired Dow securities between January 30, 2025, and July 23, 2025. This period marks a significant timeframe in which investors may have been adversely affected due to the alleged misrepresentations made by Dow's leadership.

Background of the Class Action

The complaint seeks to hold Dow accountable for purported violations of federal securities laws, specifically citing Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors argue that they suffered losses due to the inaccurate information disseminated by Dow regarding its financial stability and market performance. The plaintiffs claim that pertinent details regarding Dow's struggles were misrepresented or not disclosed, misleading shareholders about the company's real condition and future outlook.

Dow, a major player in materials science with a diverse operational focus, operates through six global business units covering various segments, including packaging, infrastructure, and consumer applications. Historically, Dow has positioned itself as a reliable investment, particularly emphasizing its robust dividend—a critical factor for many investors. CEO Jim Fitterling had often referred to the firm's dividend as integral to its investment appeal and had assured stakeholders of the company’s strong positioning amid economic challenges.

The Allegations

However, despite these reassurances, evidence suggests that the company had been facing significant hurdles, including background issues such as slowing sales, increasing tariffs, and market volatility. The allegations highlight a disconnect between Dow's public portrayal of financial health and the deteriorating circumstances that were affecting its operational capabilities.

Key statements made by Dow executives are under scrutiny, as they reportedly overstated the company's ability to manage economic headwinds and preserve financial flexibility to maintain dividend distributions.

A pivotal moment occurred on June 23, 2025, when BMO Capital downgraded Dow's stock recommendation to "Underperform," leading to a notable drop in its share price. This assessment pointed towards deeper issues, citing sustained weakness in crucial markets and growing pressures on the company’s dividends.

Further unrest among investors transpired on July 24, 2025, when Dow released its disappointing second-quarter financial results. The company reported a non-GAAP loss per share significantly higher than analysts' expectations, coinciding with a considerable drop in net sales across all operational segments. The market reacted swiftly, resulting in a 17.45% plummet of Dow's share price.

Adding to the troubles, Dow announced on the same day a significant reduction in its dividend, sparking further concern among investors about the company’s capability to navigate the prevailing economic landscape.

Impact on Investors

The fallout from these allegations has left many investors questioning Dow's credibility and future trajectory. The Pomerantz firm aims to represent the interests of those affected, encouraging individuals who purchased shares within the class period to seek recognition as Lead Plaintiffs.

Pomerantz LLP, with a legacy spanning over 85 years in securities class action litigation, has built a reputation for championing investor rights and securing substantial settlements on behalf of its clients. As this case progresses, the firm’s leadership seeks to shed light on potential corporate malpractices that may have negatively impacted shareholders.

For investors impacted by Dow's corporate actions, this class action could mark a crucial step towards promoting accountability and rectifying financial losses. Interested parties are encouraged to contact the firm to explore their legal options and engage in this collective effort.

In conclusion, the Pomerantz Law Firm's legal actions against Dow Inc. underscore a critical moment in the intersection of corporate governance and investor protection, as parties await developments in this class action lawsuit.