Valaris investors may receive additional information about the case by clicking the link "Submit Your Information" above.
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.
If you are a member of the class described above, you may no later than October 21, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
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