SHAREHOLDER ALERT - Sasol Limited (SSL) - Bronstein, Gewirtz & Grossman, LLC Notifies Shareholders With Losses Exceeding $100K of Class Action and Lead Deadline
April 6, 2020
Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Sasol Limited (“Sasol” or the Company”) (NYSE: SSL) and certain of its officers, on behalf of shareholders who purchased Sasol securities between March 10, 2015 and January 13, 2020, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/ssl.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Sasol had conducted insufficient due diligence into, and failed to account for multiple issues with, the LCCP, as well as the true cost of the project; (2) construction and operation of the LCCP was consequently plagued by control weaknesses, delays, rising costs, and technical issues; (3) these issues were exacerbated by Sasol’s top-level management, who engaged in improper and unethical behavior with respect to financial reporting for the LCCP and the project’s oversight; (4) all the foregoing was reasonably likely to render the LCCP significantly more expensive than disclosed and negatively impact the Company’s financial results; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On June 6, 2016, Sasol reported “that the expected total capital expenditure for the [LCCP] could increase up to US$11 billion, including site infrastructure and utility improvements”; a slower rate of capital “resulted in an extended project schedule and contributed to further project cost increases”; “[t]he expected returns for the project have reduced due to changes in long-term price assumptions and the higher capital estimates”; and “[t]he increase in the estimated LCCP capital cost and extended schedule will reduce the expected project returns by approximately the same amount as the Company’s lower long-term price assumptions.”
Following these disclosures, Sasol’s American depositary receipt (“ADR”) price fell $3.53 per share, or 10.99%, to close at $28.60 per share on June 6, 2016.
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On May 22, 2019, during pre-market hours, Sasol disclosed that “the cost estimate for the LCCP has been revised to a range of $12,6 to $12,9 billion which includes a contingency of $300 million.” Sasol cited a $530 million change in the project’s cost forecast because of a “[c]orrection for duplication of investment allowances of approximately $230 million”; a “[c]orrection for certain contracts and variation orders managed by Sasol, outside the primary engineering, procurement and construction contract, of approximately $180 million”; and forecast improvements that were “not expected to be realised and adjustments for potential insurance claims and procurement back-charges of approximately $120 million.”