LONDON: The legal fallout from the Grenfell fire tragedy has spread to the US, where a shareholder of the company that supplied the cladding panels has filed a new lawsuit.
Lawyers anticipate a flurry of litigation arising from the high-rise blaze in London last month, where at least 80 people died.
A shareholder of Arconic on Thursday filed a lawsuit accusing the company of defrauding shareholders over its supply of cladding panels used on the building.
In the proposed class-action complaint, Michael Brave is seeking to recoup “significant” shareholder losses rising from Arconic’s failure prior to the June 14 blaze to properly disclose its use of “highly flammable” Reynobond PE panels.
The Grenfell Tower is among several high-rise fires around the world that have been linked to the use of cladding panels that contain highly flammable plastic materials which can burn with ferocious speed when ignited.
The blaze has triggered inspections of buildings around the UK, but also in other countries where such panels are commonly used.
“A lot of our main contractor clients are doing surveys of buildings to see what materials have been used and what the risk is of similar incidents,” said Adrian Bell, the co-head of the infrastructure, construction and energy disputes group at CMS, the world’s sixth-largest law firm.
He expects to see breach of contract claims between building owners and contractors to follow in the wake of the blaze. “They would look at whether the correct materials have been used and whether the contractors correctly discharged their obligations,” he added.
The lawsuit filed in the federal court in Manhattan, where Arconic is based, is thought to be the first in the US linked to the fire in North Kensington last month.
Arconic’s share price fell 21 percent between June 14 and June 27, the day after the company once known as Alcoa said it would stop selling the panels for use in high-rises.
That decline reduced Arconic’s market value by more than $2.5 billion, according to Reuters data.
Arconic declined to comment on the lawsuit. Brave said shareholders were deceived by Arconic’s inadequate disclosures regarding the cladding panels, and that their use significantly increased the risk of property damage, injury or death in buildings containing them.
— With input from Reuters
Grenfell tragedy’s legal fallout extends to US
Grenfell tragedy’s legal fallout extends to US
Closing Bell: Saudi equities continue 4-day upward trend
RIYADH: Saudi equities closed higher on Wednesday, with the Tadawul All Share Index rising 51.52 points, or 0.47 percent, to finish at 10,945.15.
Trading activity was robust, with 373.9 million shares exchanged and total turnover reaching SR6.81 billion.
The MT30 Index also ended the session in positive territory, advancing 11.93 points, or 0.82 percent, to 1,472.82, while the Nomu Parallel Market Index declined 116.82 points, or 0.49 percent, to 23,551.47, reflecting continued volatility in the parallel market.
The main market saw 90 gainers against 171 decliners, indicating selective buying.
On the upside, Al Kathiri Holding Co. led gainers, closing at SR2.18, up SR0.12, or 5.83 percent. Wafrah for Industry and Development Co. advanced to SR23, gaining SR0.99, or 4.5 percent, while Al Ramz Real Estate Co. rose 4.35 percent to close at SR60.
SABIC Agri-Nutrients Co. added 4.21 percent to SR118.70, and Al Jouf Agricultural Development Co. climbed 4.12 percent to SR45.
Meanwhile, losses were led by Saudi Industrial Export Co., which fell 9.73 percent to SR2.69. United Cooperative Assurance Co. declined 5.08 percent to SR3.74, while Thimar Development Holding Co. dropped 4.54 percent to SR35.30.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. retreated 4.15 percent to SR48.50, and Gulf Union Alahlia Cooperative Insurance Co. slipped 3.96 percent to SR10.44.
On the announcement front, Saudi National Bank announced its intention to issue US dollar-denominated Additional Tier 1 capital notes under its existing international capital programe, with the final size and terms to be determined subject to market conditions and regulatory approvals.
The planned issuance aims to strengthen Tier 1 capital and support the bank’s broader financial and strategic objectives.
The stock closed at SR42.70, gaining SR0.70, or 1.67 percent, reflecting positive investor reaction to the capital management move.
Separately, Almasane Alkobra Mining Co. said its board approved the establishment of a wholly owned simplified joint stock company to provide drilling, exploration and related support services, with a share capital of SR100 million and headquarters in Najran, subject to regulatory approvals.
The new subsidiary aligns with the company’s strategy to enhance operational efficiency and expand its role in the Kingdom’s mining sector.
Shares of Almasane Alkobra Mining closed at SR98.70, up SR0.30, or 0.3 percent, by the end of the session.
