Dow Inc. Faces Securities Fraud Allegations Following Dividend Cut

Chemical giant Dow Inc. is confronting a series of legal challenges as multiple law firms have initiated class-action lawsuits. The suits allege the company committed securities fraud by misleading investors about its true financial health and the sustainability of its dividend payout. These accusations emerged during a period already characterized by significant stock price depreciation.

The legal actions focus on a specific timeframe: late January to late July 2025. During this period, the plaintiffs claim that Dow overstated its resilience to macroeconomic headwinds and trade tariffs. Concurrently, the company is accused of downplaying severe operational challenges, including intense competitive pressure, a decline in global demand, and substantial market oversupply. A central allegation questions whether the dividend, which was still being promoted... Read more...