RADNOR, Pa.–(BUSINESS WIRE)–$VAL #classaction–The law firm of Kessler Topaz Meltzer & Check, LLP reminds Valaris plc (NYSE: VAL) (“Valaris”) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Valaris securities between April 11, 2019 and July 31, 2019, inclusive (the “Class Period”).
REMINDER: Investors who purchased Valaris securities during the Class Period may, no later than October 21, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit ktmc.com/newcases/valaris.
According to the complaint, Valaris provides offshore drilling services in various water depths worldwide, operating a rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups. Valaris’ offshore fleet includes sixteen drillships, twelve semisubmersibles, fifty-four jackups, and two deepwater managed units. Prior to the Class Period, Valaris was known as Ensco plc (“Ensco”).
The Class Period commences on April 11, 2019, when Ensco issued a press release, pre-market, announcing the completion of the merger of Ensco and Rowan Companies plc (“Rowan”) into Ensco Rowan plc (“Ensco Rowan”). The press release touted, among other things, Ensco Rowan’s “diverse rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups” that purportedly enabled Ensco Rowan “to provide drilling services across all water depths with unmatched scale, geographic presence and customer relationships.” The press release also contained statements by top-level management which touted the financial strength and growth opportunities generated by the Ensco Rowan merger. On July 2, 2019, Ensco Rowan announced that it would change its name to Valaris plc, effective July 31, 2019.
According to the complaint, on July 31, 2019, Valaris issued a press release announcing its second quarter 2019 financial results—purportedly its first earnings report post-merger reflecting the results of the combined company—which missed market expectations. Upon issuance of the press release, analysts at Seeking Alpha published an article on August 2, 2019, entitled “Valaris PLC – Off To A Bad Start”, and noted that Valaris’ results “shock[ed] investors with massive cash usage [and] . . . surprisingly weak outlook for the ultra-deepwater segment with further dayrate recovery likely delayed until at least the second half of next year.” The article further criticized Valaris’ free cash flow for the quarter, which was “negative by a whopping $375 million causing the company’s remaining pro forma cash balance adjusted for roughly $741 million in payments related to the recent debt tender offer to decline to just $353 million.”
Following this news, Valaris’ stock price fell $3.25 per share, or approximately 39%, over the two trading sessions following its announcement of its quarterly financial results, to close at $5.02 per share on August 2, 2019.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Valaris 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 Valaris’ second quarter 2019 results; (iii) the merger leading to Valaris’ establishment could not deliver on its touted benefits; and (iv) as a result, Valaris’ public statements were materially false and misleading at all relevant times.
Investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or at [email protected]
Valaris investors may, no later than October 21, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)