Shareholder rights law firm Robbins LLP announces that a purchaser of Sasol Limited (NYSE: SSL) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between March 10, 2015 and January 13, 2020. Sasol operates as an integrated chemical and energy company in South Africa.
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Sasol Limited (SSL) Accused of Misleading Shareholders
According to the complaint, in October 2014, Sasol announced the construction of an $8.1 billion ethane cracker and derivatives complex named the Lake Charles Chemicals Project ("LCCP"). However, Sasol failed to conduct sufficient due diligence on the project, and therefore provided shareholders an inaccurate cost estimate in its announcement. This became evident on May 22, 2019, when Sasol increased the LCCP's cost estimate to a range of $12.6 to $12.9 billion, citing corrections on several aspects of the project. Then in October 2019, Sasol disclosed that a review of the LCCP brought to light "errors, omissions, and inaccuracies in the [LCCP] cost estimate" as well as a number of unethical and improper reporting activities at the highest level of management. Consequently, Sasol announced the resignation of its Joint Presidents, Chief Executive Officers, and others previously in charge of the LCCP. Finally, on January 14, 2020, Sasol announced the Company "experienced an explosion and fire at its LCCP low-density polyethylene unit." On this news, Sasol's shares fell almost 8% to close at $19.99 per share on January 15, 2020. The stock has since continued to decline.
Sasol Limited (SSL) Shareholders Have Legal Options
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