NEW YORK, Jan. 26, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Sotera Health Co. (“Sotera” or the “Company”) (NASDAQ: SHC). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Sotera and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On September 19, 2022, in a lawsuit arising from Sotera’s emissions of the hazardous gas Ethylene Oxide (“EtO”), an Illinois state court jury found Sotera liable for the plaintiff’s cancer. Specifically, the jury awarded the plaintiff $363 million in damages, including $38 million in compensatory damages and $325 million in punitive damages. Significantly, the jury cited “willful and wanton” misconduct by Sotera and its Sterigenics business in not preventing toxic EtO emissions and in failing to warn about the severe health hazard posed by the Company’s Illinois facility.
On this news, Sotera’s stock price fell $4.90 per share, or 33.3%, to close at $9.83 per share on September 19, 2022.
On September 20, 2022, analysts at Goldman Sachs downgraded Sotera stock, noting the significantly greater risk to Sotera in future EtO related litigation due to the facts that emerged in the Illinois case and “possible bands of outcome being so open ended that it creates a material overhang on the stock for the foreseeable future.”
Following the downgrade, Sotera’s stock price fell $1.63 per share, or 16.6%, to close at $8.20 per share on September 20, 2022.
Then, on September 21, 2022, analysts at JP Morgan downgraded Sotera stock after finding that “investors are likely to price in this unprecedented ruling as a higher probability of a larger settlement or subsequent payouts of the 700+ remaining individual lawsuits, which [Sotera] could potentially not afford.”
Following this additional downgrade, Sotera’s stock price fell $0.88 per share, or 10.7%, to close at $7.32 per share on September 21, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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