04/26/23 | Case Update
Hagens Berman secured a settlement with Defendants totaling $24 million. The settlement provides significant relief to purchasers of American Depository Receipts (ADRs) of Sasol Limited from March 10, 2015 through January 13, 2020, both dates inclusive, resolving allegations that Defendants misled investors by misrepresenting and failing to disclose the true construction costs and schedule for Sasol’s Lake Charles chemical plant.
The Court approved distribution of settlement funds on April 26, 2023.
This was a securities fraud class action filed on behalf of all purchasers of Sasol ADRs (NYSE: SSL) securities between Mar. 10, 2015 and Jan. 13, 2020, inclusive (the “Class Period”), alleging claims against Sasol Limited (SSL), a South Africa-based energy and chemical company, and certain of its most senior officers.
According to the Complaint, Defendants allegedly misled investors by misrepresenting and failing to disclose that: (1) Sasol conducted insufficient due diligence into, and did not account for multiple issues with, Sasol’s Lake Charles chemical plant (“LCCP”), as well as its true cost; (2) construction and operation of the LCCP was plagued by control weaknesses, delays, rising costs, and technical issues; and (3) Sasol’s top-level management exacerbated these issues by engaging in improper and unethical behavior concerning financial reporting for, and oversight of, the LCCP.
Investors began to learn the truth through a series of disclosures, including on May 22, 2019, when Sasol abruptly raised the project’s cost estimate by $1 billion and disclosed an internal review into the project’s costs and construction schedule. The company admitted to weaknesses in the project’s integrated controls, as well as significant additional concerns related to the project’s forecasting process.
Then, on Oct. 27, 2019, Sasol terminated its co-CEOs following an internal probe showing that the Lake Charles project management team acted inappropriately, lacked experience, and was overly focused on maintaining cost and schedule estimates instead of providing accurate information.
Finally, on Jan. 13, 2020, Sasol disclosed an explosion and fire at its Lake Charles project’s low-density polyethylene unit, requiring the company to shut down the unit.
Each of these disclosures caused the price of Sasol ADRs to decline sharply.
Hagens Berman achieved a settlement totaling $24 million on behalf of purchasers of American Depository Receipts (ADRs) of Sasol Limited from March 10, 2015 through January 13, 2020, resolving these allegations.
CASE TIMELINE
U.S. District Judge John P. Cronan granted final approval of the class action settlement.
U.S. District Court Judge John P. Cronan approved a $24 million settlement.
Hagens Berman will post important information on this page, such as when notices will be mailed and date of final approval hearing.
