|Company Name||Sasol Limited|
On October 27, 2014, Sasol announced the construction of an $8.1 billion ethane cracker and derivatives complex called 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, including site infrastructure and utility improvements.” Moreover, the Company disclosed that “the estimated LCCP capital cost and extended schedule will reduce the expected project returns by approximately the same amount as the Company’s lower long-term price assumptions.”
On this news, Sasol’s American depositary receipt (“ADR”) price fell $3.53 per share, or approximately 11%, to close at $28.60 per share on June 6, 2016, thereby injuring investors.
On May 22, 2019, during pre-market hours, Sasol revealed that “the cost estimate for the LCCP has been revised to a range of $12.6 to $12,9 billion which includes a contingency of $300 million.”
On this news, Sasol’s ADR price fell $4.50 per share, or nearly 15%, to close at $25.64 per share on May 22, 2019, thereby injuring investors further.
On August 16, 2019, during pre-market hours, Sasol postponed its full year 2019 financial results because of “possible LCCP control weaknesses.”
On this news, Sasol’s ADR price fell $0.74 per share, or over 4%, to close at $17.67 per share on August 16, 2019, thereby injuring investors further.
On October 28, 2019, Sasol disclosed that there were “errors, omissions, and inaccuracies in the [LCCP] cost estimate” and that the highest level of management had engaged in a number of unethical and improper reporting activities. Sasol also announced the resignation of, inter alia, its Joint Presidents and Chief Executive Officers (“CEOs”) and Senior Vice Presidents and others previously in charge of the LCCP.
On January 14, 2020, Sasol confirmed “an explosion and fire at its LCCP low-density polyethylene (LDPE) unit.” Sasol stated that “[t]he unit was in the final stages of commissioning and startup when the incident occurred.”
On this news, Sasol’s ADR price fell $1.70 per share, or nearly 8%, over the following two trading days to close at $19.99 per share on January 15, 2020, thereby injuring investors further.
Submit Your Information
If you suffered a loss on your Sasol Limited investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.