Chemours Company (CC)

Chemours (CC) stock plunged by 9.07% due to the release of its quarterly earnings report and news of an ongoing probe into its accounting practices. Despite surpassing top- and bottom-line expectations for the quarter, investors were more concerned about the company's internal issues and the regulatory scrutiny it is facing.

• Weak End Markets and Ongoing Probe: Chemours, known for products like Teflon, reported fourth-quarter earnings that exceeded expectations but highlighted challenges due to weak end markets and economic headwinds. However, the focus shifted to the company's announcement that it had received information requests from regulators and prosecutors related to its accounting practices.
• Internal Audit and Executive Changes: In response to a tip made to its ethics hotline, Chemours launched an internal audit, delaying its fourth-quarter results and suspending key executives. The audit revealed that executives had delayed payments and sped up collections to meet cash-flow targets tied to bonus awards. Similar actions were also found to have occurred in the fourth quarter of 2022. Denise Dignam was named permanent CEO as Chemours tried to address the issues uncovered in the audit and move past the controversy. The company stated that it is cooperating with information requests from the Securities and Exchange Commission and attorneys from the Southern District of New York regarding its findings.