Celanese Corporation (CE) Drops 13% Following Another Announcement of Inventory Reductions - Notification from Hagens Berman
In a significant development, global plaintiffs' rights complex litigation firm Hagens Berman is investigating Celanese Corporation for potential misleading of investors about sales practices and growth prospects. The investigation, led by partner Reed Kathrein, focuses on Celanese's disclosures concerning sales practices, inventory reporting, and growth trajectory, particularly at the Engineered Materials segment.
The investigation was prompted by a series of financial reports from Celanese that raised concerns about the company's transparency. On May 5, 2025, Celanese reported Q1 2025 earnings, blaming "significant automotive destocking in the Western Hemisphere that began in the second half of 2024 and continued through the first two months of the quarter." This destocking, according to the reports, had a significant impact on Celanese's financial performance.
However, Celanese had previously assured investors that the destocking would be temporary and contained to the quarter. This assurance was called into question when, on February 18, 2025, Celanese reported disappointing Q4 and FY 2024 financial results, partly blaming "severe destocking." The price of Celanese shares crashed 26% lower the day after the November 2024 financial results were reported, and the price also collapsed the next day after the February 2025 financial results were reported.
The price of Celanese shares again decreased sharply following the August 11, 2025, quarterly report. On this occasion, Celanese stated that volumes for the Engineered Materials segment were still below normal levels due to easing of destocking in Europe.
Persons with non-public information regarding Celanese should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
Investors who have substantial losses or have knowledge that may assist the firm's investigation are encouraged to submit their losses now. Reed Kathrein, the Hagens Berman partner leading the investigation, stated, "We're investigating whether Celanese may have misled investors about possibly overloading its customers with excess inventory."
Reed Kathrein was led as a partner by the law firm Kaplan, Fox & Kilsheimer LLP in August 2025 to conduct the investigation against Celanese Corporation regarding possible manipulation of sales practices, inventory counts, and growth potential.
Hagens Berman, a national shareholders rights firm, has a proven track record of success. The firm's team has secured over $2.9 billion in this area of law, and more information about the firm and its successes can be found at hbsslaw.com.
Individuals with questions or concerns are encouraged to contact Reed Kathrein at 844-916-0895 or email [email protected].
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