Arconic (ARNC) shares were indicated lower in premarket trading after an investor filed a lawsuit in the U.S. over its involvement in the Grenfell Tower fire that killed 80 people in London last month.
Michael Brave, an Arconic shareholder, filed a lawsuit against the aluminium company Thursday, Reuters reported, claiming the company defrauded investors over supplying cladding to Grenfell Tower, which was the sight of a fire on June 14 that killed at least 80 people and destroyed the building.
In a proposed class-action suit Brave is seeking to recoup shareholder losses that resulted when it was revealed the Reynobond PE cladding panels provided to the 24-story building was flammable.
The suit was filed Thursday in a federal court in Manhattan. Arconic share fell 1.02% in after hours trading to $24.20. Shares closed at $24.45 on Thursday.
Brave claimed shareholder saw "significant" losses when Arconic's share price fell 21% between June 14 and June 27, the day after the company stop selling the panels, wiping $2.5 billion off the value of the company, Reuters reported.
Brave also named former CEO Klaus Kleinfeld, who stepped down on pressure from activist investor Elliott Management, and current CFO Kenneth Giacobbe as defendants.
The suit claims that the company deceived shareholders with inadequate disclosures about the cladding and that their use increased the risk of property damage, injury or death.
Brave said Arconic's public statements were "materially false and misleading at all relevant times."
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