Arconic sued in US over Grenfell fire

A shareholder of Arconic has filed a lawsuit in the US accusing the company of defrauding shareholders over its supply of cladding panels used at Grenfell Tower, the London high-rise where at least 80 people died in a fire last month.

In his proposed class- action complaint, Michael Brave is seeking to recoup “significant” shareholder losses stemming from Arconic’s failure prior to the June 14 blaze to properly disclose its use of “highly flammable” Reynobond PE panels. The shareholder lawsuit filed in the federal court in Manhattan, where Arconic is based, may be the first in the US tied to the fire that gutted the 24-story Grenfell Tower, in London’s North Kensington district.

Arconic’s share price fell 21% 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 $2.5bn (€2.1bn). Arconic declined to comment on the lawsuit.