Law firm Pomerantz has filed a class action lawsuit against offshore drilling firm Valaris alleging that the drilling firm has misled investors.
Pomerantz on Saturday said the class, filed in United States District Court, for the Southern District of New York, was on behalf of a class consisting of all persons and entities other who acquired publicly traded Valaris securities between April 11, 2019, and July 31, 2019.
To remind, Valaris was formed recently through a merger between Ensco and Rowan, creating the world’s largest offshore drilling firm by the fleet size.
The Pomerantz complaint alleges that throughout the Class Period, the defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.
“Specifically, the defendants failed to disclose to investors that: (i) the Company was plagued by a weak ultra-deepwater segment, massive cash usage, and significant negative cash flow; (ii) the foregoing was reasonably likely to have a material negative impact on the Company’s second quarter 2019 results; (iii) the merger leading to Valaris’s establishment could not deliver on its touted benefits; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times,” Pomerantz said in the statement over the weekend.
The class action is “seeking to recover damages caused by Defendants’ violations of the federal securities laws.” and to “pursue remedies… against the Company and certain of its top officials.”
Offshore Energy Today has reached out to Valaris, seeking comment on the class action and the allegations made by Pomerantz. We will update the article if we receive a response.
Offshore Energy Today Staff
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