At least 80 people died in a 14 June fire at Grenfell Tower, a high-rise building in North Kensington.
Arconic shareholder, Michael Brave, filed a lawsuit against the company in the US District Court in Manhattan for allegedly failing to disclose its use of “highly flammable” Reynobond panels prior to the blaze.
Brave is seeking to recoup “significant” shareholder losses related to the incident. Arconic's share price fell 21% between 14 June and 27 June, the day after the company said it would stop selling the panels for use in high-rises.
The group’s market value fell by than US$2.5bn following the share price decline.
Arconic, the company spun out of Alcoa, shares dipped 0.12% to US$24.42 in early US trading.
Brave said buildings that contain the cladding panels were at higher risk of property damage, injury or death. He said shareholders were deceived by Arconic's inadequate disclosures regarding the panels.
The shareholder also said former chief executive Klaus Kleinfeld and current chief financial officer Kenneth Giacobbe should also be held liable for their contents.
Arconic declined to comment on the lawsuit.