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London tower blaze cladding firm sued in the U.S.

Friday, July 14, 2017 - 01:11

Arconic, the U.S. company that supplied the cladding panels used at Grenfell Tower in London, where 80 people died in a deadly blaze, is being sued by a shareholder. David Pollard reports.

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The firm that supplied the cladding implicated in the London tower blaze is being sued in the United States. Eighty people died in the fire at Grenfell tower. Now shareholder Michael Brave is suing manufacturer Arconic to recoup what he calls "significant" shareholder losses. That after the firm's alleged failure to disclose its use of quote "highly flammable" Reynobond PE panels. He says the risk of property damage, injury or death was significantly increased in buildings where the panels were used and that Arconic's public statements were "materially false and misleading at all relevant times". Arconic did not immediately respond to requests for comment. Former Chief Executive Klaus Kleinfeld and current Chief Financial Officer Kenneth Giaobbe have also been named as defendants. The proposed class-action lawsuit would allow shareholders to sue as a group It has been filed in the federal court in Manhattan where Arconic is based. Arconic's share price fell 21 percent between June 14 - the day of the fire - and June 27 - when the company announced it would stop selling the panels for use in high-rises. That decline reducing Arconic's market value by more than 2.5 billion dollars, according to Reuters data.

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London tower blaze cladding firm sued in the U.S.

Friday, July 14, 2017 - 01:11