After losing 98% of its value at its peak: the massive lawsuit threatening Caesarstone

Caesarstone postponed its third-quarter earnings report to allow discussions on legal settlements, after a $46.5 million damages ruling against it in a California lawsuit. The company's market cap stands at about $53 million, down 98% from its 2015 peak. Caesarstone faces hundreds of lawsuits over silicosis lung disease among countertop installers.

Caesarstone, the quartz countertop manufacturer from Kibbutz Sdot Yam, postponed its third-quarter earnings report to allow discussions on legal settlements. Recently, a $46.5 million damages ruling was issued against it in a California lawsuit, an amount close to its market cap of about $53 million. The company has lost 98% of its peak value from 2015, when it stood at $2.5 billion. Caesarstone faces hundreds of lawsuits claiming that countertop installers contracted silicosis due to silica exposure. Australia has banned work with countertops containing crystalline silica, and other countries are considering stricter regulations. CEO Yossi Shiran, who returned in 2023, led a reorganization plan that included closing factories and laying off 350 workers. In the first half of the year, revenue fell 7.7% to $185 million, but gross profit rose 4.7% to $43 million. Operating and net losses increased to $29.6 million and $36.7 million, respectively.