Multiple law firms, including the Law Offices of Frank R. Cruz and the Law Offices of Howard G. Smith, announced investigations into FMC Corporation for potential violations of federal securities laws. These investigations follow FMC's release of its fourth quarter and full-year 2024 financial results on February 4, 2025. The company missed its previously announced full fiscal year revenue guidance and consensus estimates.
The investigations allege that during the period of November 16, 2023, to February 4, 2025, FMC made materially false and/or misleading statements and failed to disclose material adverse facts. Specifically, it is alleged that the company's channel management initiatives were not progressing as represented, and that FMC chose not to compete on prices, leading to inflated inventory in channels across Latin America, Asia, Canada, and Eastern Europe.
FMC's February 4, 2025, earnings report revealed that growth was below expectations as customers sought to hold significantly less inventory. The company also provided a full-year 2025 outlook expecting revenue to remain essentially flat due to weaker demand and lower-than-historical inventory levels. Management stated a need to significantly lower FMC inventory in the channel beyond expectations.
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