The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Sotera Health Company (SHC) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Sotera Health Company (“Sotera” or the “Company”) (NASDAQ: SHC) common stock: (a) pursuant and/or traceable to the Company’s November 2020 initial public offering (“IPO”); (b) pursuant and/or traceable to the Company’s March 2021 secondary public offering (“SPO”); and/or (c) between November 20, 2020 and September 19, 2022, inclusive (the “Class Period”). Sotera investors have until March 27, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On or about November 20, 2020, Sotera conducted its initial public offering (“IPO”), selling 53.59 million shares of common stock at $23 per share. On or about March 18, 2021, the Company conducted its secondary public offering (“SPO”), selling 25 million shares at $27 per share.

On September 19, 2022, a jury found Sotera liable for $363 million in damages, after determining that its sterilization services exposed communities surrounding its processing facilities to Ethylene Oxide (“EtO”) emissions and caused the plaintiff’s cancer. The jury cited the Company’s “willful and wanton” misconduct in not preventing toxic EtO emissions and failing to warn about the severe health hazard posed by its facilities. On this news, Sotera’s stock price fell $4.90, or 33.3%, to close at $9.83 per share on September 19, 2022, thereby injuring investors.

Then, on September 20, 2022, analysts at Goldman Sachs downgraded Sotera stock, noting a greater risk to Sotera in future EtO-related litigation due to facts that emerged in the trial and “possible bands of outcome being so open ended that it creates a material overhang on the stock for the foreseeable future.” On this news, Sotera’s stock price fell $1.63, or 16.6%, to close at $8.20 per share on September 20, 2022, thereby injuring investors further.

Then, on September 21, 2022, analysts at JP Morgan downgraded Sotera stock after finding that “investors are likely to price in this unprecedented ruling as a higher probability of a larger settlement or subsequent payouts of the 700+ remaining individual lawsuits, which [Sotera] could potentially not afford.” On this news, Sotera’s stock price fell $0.88, or 10.7%, to close at $7.32 per share on September 21, 2022 – 68.2% below the IPO price and 72.9% below the SPO price.

The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that for years the Company failed to employ adequate and effective emissions control systems at its sterilization facilities, allowing dangerous amounts of toxic EtO fumes to pollute the air surrounding those facilities and exposing communities to significantly increased cancer risks.

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If you purchased Sotera common stock during the Class Period, you may move the Court no later than March 27, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Sotera common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Sotera Health Company (SHC) Investors