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Arconic Faces Investor Lawsuit Over Deadly Grenfell Tower Fire

Arconic Faces Investor Lawsuit Over Deadly Grenfell Tower Fire CNNMoney (07/14/17) Petroff, Alanna

Shareholder Michael Brave filed suit against Arconic this past Thursday, accusing the company of defrauding investors. The proposed class action alleges that the American manufacturer of cladding panels installed at the Grenfell Tower in London failed to properly disclose the sale of "highly flammable" building materials used to refurbish the building, which burned back in June killing at least 80 people. Arconic made false and misleading statements about its "business, operational, and compliance policies," according to the lawsuit, which seeks to recover "significant losses and damages" suffered by shareholders. Arconic stopped selling the cladding for use in high-rise buildings less than two weeks after the fire, which the company said was "the right decision because of the inconsistency of building codes across the world and issues that have arisen in the wake of the Grenfell Tower tragedy regarding code compliance of cladding systems in the context of buildings' overall designs."