Livent Corporation (LTHM) Accused of Inflating its IPO Price

According to the complaint, Livent Corporation (LTHM) held its IPO in October 2018, and received approximately $369 million in proceeds. However, prior to the IPO, Livent failed to disclose in its registration statement that a key supply contract had been terminated. Rather, Livent made false assurances that it had reached an agreement on the final wording of a new supply agreement with the vendor. As a result of the contract termination, Livent was forced to fulfill customer contracts using alternative vendors at reduced revenues and lower margins. Since the truth was revealed, Livent's stock price has declined sharply. As of May 30, 2019, Livent's stock was trading as low as $6.36 per share, an over 60% decline from the $17 per share IPO price.