Securities Class Action Lawsuit Filed Against Dow Inc.

Strategic Insights -

Investors who purchased Dow Inc.'s securities between January 30, 2025, and July 23, 2025, inclusive, have until October 28, 2025, to file lead plaintiff applications in a securities class action lawsuit. The lawsuit, filed in the United States District Court for the Eastern District of Michigan, alleges that Dow and certain of its executives failed to disclose material information during the class period, violating federal securities laws. On July 24, 2025, the company disclosed a significant loss and decline in sales, causing the stock price to plummet.

Key Takeaways:

  • The lawsuit alleges that Dow and its executives failed to disclose material information during the class period, violating federal securities laws.
  • The company disclosed a 2Q 2025 non-GAAP loss per share of $0.42, much larger than the approximate $0.17 to $0.18 per share loss expected by analysts.
  • Net sales of $10.1 billion represented a 7.3% year-over-year decline and missed consensus estimates by $130 million.
  • The company cut its dividend in half, from $0.70 per share to only $0.35 per share, citing the need for "financial flexibility amidst a persistently challenging macroeconomic environment."
  • The price of Dow's shares fell $5.30 per share, or 17.45%, to close at $25.07 per share on July 24, 2025.
  • KSF Managing Partner Lewis Kahn is encouraging investors who purchased Dow securities during the class period to contact him to discuss their options.
  • The case is Sarti v. Dow Inc., No. 25-cv-12744.

Statistics:

  • 17.45% - The percentage decline in the price of Dow's shares on July 24, 2025.
  • $130 million - The difference between Dow's actual sales and consensus estimates.
  • $5.30 - The decline in the price of Dow's shares on July 24, 2025.
  • 7.3% - The year-over-year decline in Dow's net sales.
  • $0.42 - The non-GAAP loss per share reported by Dow in 2Q 2025.
  • $0.70 - The original dividend paid by Dow per share.
  • $0.35 - The new dividend paid by Dow per share.

Sources:

  • GlobeNewswire, " Securities Class Action Lawsuit Filed Against Dow Inc. , (KSF) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr."
  • Kahn Swick & Foti, LLC, "About the Lawsuit"
  • Kahn Swick & Foti, LLC, "About Kahn Swick & Foti, LLC"