Freeport-McMoRan Inc. (NYSE: FCX): Freeport-McMoRan Inc. has been sued for securities fraud after a significant stock drop resulting from potential violations of the federal securities laws. The decline in Freeport’s share price caused significant losses for investors. The class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Freeport securities. The class action is pending in the U.S. District Court for the District of Arizona and is captioned Reed v. Freeport-McMoRan Inc., et al., No. 2:25-cv-04243.
If you lost money on your investments in Freeport, you are encouraged to submit your information.
Why Was Freeport Sued for Securities Fraud?
Freeport is a mining company with its Indonesian affiliate operating as PT Freeport Indonesia (“PTFI”). PTFI operates the Grasberg Copper and Gold Mine (“Grasberg”), in which the Indonesian government holds a commercial interest.
During the relevant period, Freeport touted its safety procedures, including its use of data and technology as well as behavioral science principles to prevent fatal incidents. It indicated it provides the training, tools, and resources needed to identify risks and consistently apply effective controls.
As alleged, in truth, Freeport overstated its commitment to safety, given that it conducted unsafe mining practices at the Grasberg mine which were reasonably likely to result in worker fatalities.
Why did Freeport’s Stock Drop?
On September 9, 2025, Freeport issued a press release on its PTFI operations. It announced that mining operations in Grasberg had been suspended to evacuate seven team members that were trapped due to an incident at one of its underground mines. Freeport stated that a large flow of wet material from a production drawpoint occurred restricting evacuation routes for the seven team members. This news caused the price of Freeport stock to drop $2.77 per share, or more than 5.9%, from a closing price of $46.66 per share on September 8, 2025, to $43.89 per share on September 9, 2025.
On September 24, 2025, Freeport issued an update on the incident noting that two of the seven individuals had been fatally injured and that the remaining five team members remained missing. In the same release, Freeport noted that due to the suspension in operations, sales were expected to be 4% lower for copper and approximately 6% lower for gold than July 2025 estimates. Freeport further noted that “[a] return to pre-incident operating rates could potentially be achieved in 2027.” Additionally, because of the incident and the impact on operations, PTFI was forced to notify its commercial counterparties of a force majeure in accordance with the provisions of its contracts. This news caused the price of Freeport stock to drop $7.69 per share, or almost 17%, from a closing price of $45.36 per share on September 23, 2025, to $37.67 per share on September 24, 2025.
Then, on September 25, 2025, Bloomberg reported that the incident and halt in production was straining the relationship between Freeport and Indonesia, that “the Jakarta government [had already been] looking to take greater control,” and that government officials may increase its demand for an increased share. This news caused the price of Freeport stock to drop $2.33 per share, or more than 6%, from a closing price of $37.67 per share on September 24, 2025, to $35.34 per share on September 25, 2025.
Finally, on September 28, 2025, an Indonesian news organization reported that the incident was preventable, not just a natural disaster. The article quotes an Indonesian professor stating that “the landslide, often termed a mud rush, is a known flow of mud and rocks from the mine cavity, a risk long associated with certain mining methods.” The professor stated, “[i]n other words, this danger is not new and should have been anticipated from the beginning[.]”
What is the Freeport Leadership Deadline?
You may ask the Court no later than January 12, 2026, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
Contact Us
If you lost money when Freeport securities dropped in price, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212.789.3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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