Overview

• GrafTech International Ltd. is facing a securities class action lawsuit due to alleged misrepresentations about its Monterrey facility in Mexico, which is one of its highest-capacity and lowest-cost facilities.
• The Monterrey facility, where GrafTech manufactured all its pin stock inventory, was reportedly not in compliance with applicable environmental laws and regulations, and had been contaminating neighboring communities with harmful carcinogenic gasses and particulate matter for decades.
• GrafTech had signed agreements with local authorities to improve the environmental performance of the Monterrey facility, but repeatedly failed to honor these commitments.
• The company's supplies of pin stock and electrodes were materially diminished when the Monterrey facility was shut down by government regulators in response to excessive pollution.
• GrafTech reported a significant net loss in Q2 2023, blaming the closure of the Monterrey facility for its disappointing financial results.