Chemours Fights Off Investor Suit Over Free Cash Flow Accounting

Chemours Co. investors can’t proceed with a securities fraud lawsuit alleging the chemical company concealed executives’ manipulation of free cash flow metrics, at least as currently pleaded, a federal court ruled.

The investors didn’t adequately allege a material misrepresentation because Chemours disclosed the impact of the “discretionary” timing of its payables and receivables, Judge Richard G. Andrews said Tuesday for the US District Court for the District of Delaware. The investors will have a chance to replead their claims.

Three senior executives were placed on leave in February 2024 as Chemours investigated its accounting amid accusations that the officers delayed ...