NEW YORK, Feb. 11, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating Sasol Limited ("Sasol" or the "Company") (NYSE: SSL). A class action securities lawsuit has been filed on behalf of investors who purchased Sasol securities, including Sasol American Depositary Receipts ("ADRs"), between March 10, 2015 and January 13, 2020, inclusive (the "Class Period").
According to the complaint, on October 27, 2014, Sasol announced the construction of an $8.1 billion ethane cracker and derivatives complex in Lake Charles, Louisiana, the Lake Charles Chemicals Project ("LCCP").
On June 6, 2016, Sasol reported that "the expected total capital expenditure for the [LCCP] could increase up to US$11 billion. . . ." Following this news, the price of Sasol's ADRs fell $3.53 per share, nearly 11%, to close at $28.60 per ADR on June 6, 2016.
On May 22, 2019, Sasol disclosed that the cost estimate for LCCP had been revised to a range of $12.6 billion to $12.9 billion, about 50% more than initially planned. Following this news, the price of Sasol's ADRs fell $4.50 per share, nearly 15%, to close at $25.64 per ADR on May 22, 2019.
On August 16, 2019, Sasol issued a press release disclosing that it was delaying the announcement of its 2019 financial results due to "possible LCCP control weaknesses." Following this news, the price of Sasol's ADRs fell $0.74 per share, about 4%, to close at $17.67 per ADR on August 16, 2019.
On October 28, 2019, Sasol disclosed that its review of the LCCP control weaknesses had found "errors, omissions, and inaccuracies in the [LCCP] cost estimate" and, according to the complaint, that a number of unethical and improper reporting activities had taken place at the highest level of management. Sasol also announced the resignations of its Joint Chief Executive Officers, Mr. Bogani Nqwababa and Mr. Stephen Cornell.
Finally, on January 14, 2020, Sasol issued a press release confirming that on January 13, 2020, the Company "experienced an explosion and fire at its LCCP low-density polyethylene (LDPE) unit." Further, Sasol stated that "[t]he unit was in the final stages of commissioning and startup when the incident occurred" and "has been shut down and an investigation is underway to determine the cause of the incident, the extent of the damage and resulting impact on the LDPE unit's [beneficial operation] schedule. Following these disclosures, the price of Sasol's ADRs fell $1.70 per share, or 7.84%, over two trading days, to close at $19.99 per ADR on January 15, 2020.
The complaint alleges, among other things, that throughout the Class Period, the Company and other Defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) construction and operation of the LCCP was consequently plagued by control weaknesses, delays, rising costs, and technical issues; (iii) 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; and (iv) all of the foregoing was reasonable likely to render the LCCP significantly more expensive than disclosed and negatively impact the Company's financial results.
If you are a member of the proposed Class, you may move the court no later than April 6, 2020 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP