Olin Corporation Records $75M Charge Due to Litigation Verdict
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy OLN?
Olin issued an update following a recent verdict in a litigation matter filed by Shintech Incorporated against Olin Corporation and its wholly owned subsidiary, Blue Cube Operations LLC. In April 2023, Shintech filed a lawsuit seeking damages against Olin. The litigation involved a pricing dispute between Shintech and Olin, a 2023 maintenance turnaround of a vinyl chloride monomer plant and a disputed force majeure event. Olin supplies VCM to Shintech under a long-term supply contract. Following three years of active litigation, the jury returned a verdict in favor of Shintech on February 10, 2026. Olin was disappointed by the verdict and is currently assessing its legal rights and options. The company firmly believes that its actions at the time were appropriate and aligned with best industry practices to prioritize the safety of its employees and the community. As a result of this verdict, the company obtained new information related to this litigation loss contingency and recorded a one-time, pre-tax charge of $75M in the fourth quarter 2025, which will be reflected in the December 31, 2025 consolidated financial statements included in the company's 2025 Form 10-K. Fourth quarter 2025 adjusted EBITDA will exclude this non-recurring charge. The company expects to pay approximately $185M, including previously accrued reserves, during the first half of 2026 related to this matter.
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Analyst Views on OLN
Wall Street analysts forecast OLN stock price to rise
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 23.870
Low
20.00
Averages
24.00
High
30.00
Current: 23.870
Low
20.00
Averages
24.00
High
30.00
About OLN
Olin Corporation is a vertically integrated global manufacturer and distributor of chemical products and a United States manufacturer of ammunition. It operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and formulated solutions products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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