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NEW YORK, Aug. 24, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Valaris plc ("Valaris" or the "Company")(NYSE:VAL) of the October 21, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Valaris stock or options between April 11, 2019 and July 31, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/VAL. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Valaris securities between April 11, 2019 and July 31, 2019 (the "Class Period"). The case, Zhang v. Valaris plc et al., No. 19-cv-07816 was filed on August 20, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose 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.
On July 31, 2019, Valaris issued a press release announcing its second quarter 2019 financial results. Upon its issuance, 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 ultradeepwater segment with further dayrate recovery likely delayed until at least the second half of next year." The Seeking Alpha Article further criticized the Company’s 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."
Additionally, following the release of its second quarter financial results, Valaris was downgraded to Market Perform from Outperform at Wells Fargo. Wells Fargo saw "the company’s outlook having more inherent risk going forward."
On this news, Valaris's share price fell from $8.27 per share on July 31, 2019 to a closing price of $5.02 on August 2, 2019: a $3.25 or a 39.30% drop over two trading days.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Valaris's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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