Tronox ($TROX) Dividend Slashed, Revenue Decline, and Demand Misrepresentation Case

Court: D. Connecticut

Case: 3:25-cv-01441

• TROX investors filed a claim against Tronox for overstating its ability to forecast demand for titanium dioxide (TiO2) and zircon, misrepresenting growth prospects, and concealing financial weakness.
• After the company slashed revenue guidance and cut its dividend by 60% on July 30, 2025, TROX collapsed 38% in one day.
• TROX investors can join this case to be notified about potential recovery.

Case Details:

Between February 12, 2025, and July 30, 2025, Tronox executives repeatedly assured investors that strong demand for TiO2 and zircon would drive growth in 2025, citing cost savings initiatives and opportunities to increase global market share. CEO John Romano and CFO D. John Srivisal emphasized improved volumes, pricing stability, and sustainable earnings growth, while minimizing risks from seasonality, tariffs, and macroeconomic headwinds.

In reality, Tronox’s forecasting processes were flawed, and demand was weakening. By mid-2025, TiO2 and zircon sales were sharply declining, competitive pressures intensified, and operational costs weighed heavily on margins.

On July 30, 2025, Tronox disclosed that Q2 revenue had declined 11%, TiO2 sales were down 10%, zircon sales had plummeted 20%, and overall guidance for 2025 was revised downward. Management also reduced the dividend by 60% to preserve cash. TROX collapsed 38% the next day.

Based on these events, TROX investors filed a claim against Tronox, alleging the company:

• It misrepresented its ability to forecast demand for TiO2 and zircon.
• It concealed weakening sales, margin pressures, and flawed guidance.
• It artificially inflated its stock price with false growth assurances.

Investors argue Tronox misled the market about its true financial health and demand outlook, leaving shareholders with steep losses when the truth emerged.