BALA CYNWYD, PA / ACCESSWIRE / September 20, 2019 / Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against Valaris plc ("Valaris" or the "Company") (NYSE:VAL - News) for possible breaches of Federal Securities law.
The Class Period commences on April 11, 2019, when Ensco (prior to the Class Period, Valaris was known as 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"), noting, 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 management statements regarding 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-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.
If you purchased shares of Valaris between April 11, 2019 and July 31, 2019 and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is October 21, 2019. You may contact Marc Ackerman, Esquire or Jordan Schatz, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, or by calling toll free 877-534-2590. For additional information, please go to http://www.brodskysmith.com/cases/valaris-plc-nyse-val/.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
SOURCE: Brodsky & Smith, LLC