Stockholders v Tronox Inc. : Kerr-McGee Corporation
Stockholders File Lawsuit Against Tronox Inc. : Kerr-McGee Corporation
According to a press release dated July 10, 2009, the complaint charges Kerr-McGee Corporation (Kerr-McGee), Anadarko Petroleum Corporation (Anadarko) and certain of Kerr-McGee and Tronoxs executives with violations of the Exchange Act. Tronox is a Delaware corporation engaged in the business of producing and marketing titanium dioxide a white pigment used in a wide range of products to impart whiteness, brightness and opacity.
Tronox was spun-off from Kerr-McGee in a two-step transaction. In November 2005, Kerr-McGee sold 17.5 million shares of Tronox Class A shares in an initial public offering for $14.00 per share (the IPO) generating proceeds for Kerr-McGee of $225 million. After the IPO, Kerr-McGee continued to hold 56.7% of Tronoxs outstanding common stock. In March 2006, Kerr-McGee distributed the balance of the shares that it owned as Class B shares to its shareholders as a dividend (the Spin-Off).
The Complaint alleges that, throughout the Class Period, Defendants failed to disclose material adverse facts about the Companys true financial condition, business and prospects. Specifically, the Complaint alleges that Defendants failed to disclose the true scope and extent of Tronoxs environmental and tort liabilities. When the market learned of the true facts about the Company, the price of Tronox stock declined precipitously.
If you bought Tronox Inc. : Kerr-McGee Corporation securities and would like to obtain information about the Tronox Inc. : Kerr-McGee Corporation lawsuit, then you are invited to call Kahn Swick Foti, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.ksfcounsel.com.
