NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/seadrill/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Seadrill Limited (“Seadrill”) (NYSE:SDRL) American Depository Receipts (“ADRs”) during the period between July 10, 2014 and November 25, 2014 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs’ counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/seadrill/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Seadrill and certain of its senior executives with violations of the Securities Exchange Act of 1934. Bermuda-based Seadrill is the world’s largest offshore drilling contractor, providing offshore drilling services to the oil and gas industry worldwide.
The complaint alleges that during the Class Period, defendants made false and misleading statements about the strength of the Company’s business and prospects. Additionally, Seadrill has historically paid a large dividend, which it raised twice in early 2014 resulting in the Company paying a $1 per share quarterly dividend during the last two quarters of 2014. During the Class Period, defendants maintained that due to the Company’s strong backlog and the strength of its balance sheet, despite any turbulence in the oil industry, the Company would not cut its $4 per share annual dividend. As a result of defendants’ Class Period statements, Seadrill ADRs traded at artificially inflated prices, reaching a high of over $38 per ADR in July 2014.
On November 26, 2014, before the markets opened, Seadrill reported disappointing third quarter 2014 financial results (for the period ended September 30, 2014), announcing that it had missed its profit targets. In addition, the Company disclosed that it was indefinitely suspending its dividend, citing the Company’s need to pay down its debt to strengthen its balance sheet. The Company also disclosed that its Board of Directors had authorized the repurchase of up to 10% of its outstanding shares. On this news, the price of Seadrill ADRs fell from $20.71 per ADR to $15.99 per ADR on extremely heavy trading volume, a 58% decline from the ADRs’ Class Period high.
Plaintiffs seek to recover damages on behalf of all purchasers of Seadrill ADRs during the Class Period (the “Class”). The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. Please visit http://www.rgrdlaw.com for more information.