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Arconic sued by shareholder in US over losses stemming from Grenfell Tower fire

Arconic has been accused of failing to disclose its use “highly flammable” cladding panels to Grenfell Tower, the London building were at least 80 died in a fire

Grenfell Tower
At least 80 people were killed in the blaze at Grenfell Tower last month

New-York based building materials company Arconic Inc (NYSE:ARNC) is being sued in the US on claims it defrauded shareholders over supplying flammable cladding panels to London’s Grenfell Tower.

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.

Quick facts: Arconic Inc

Price: 29.35 USD

Market: NYSE
Market Cap: $12.7 billion

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