Robbins Arroyo LLP: Seadrill Limited (SDRL) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Seadrill Limited (NYSE: SDRL) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between July 10, 2014 and November 25, 2014. Seadrill is the world’s largest offshore drilling contractor, providing offshore drilling services to the oil and gas industry worldwide.
Seadrill Is Accused of Misleading Investors
According to the complaint, Seadrill American Depository Receipts (“ADRs”) fell $5.52 per ADR, to close at $15.19 per ADR on November 26, 2014, after Seadrill revealed that it would be indefinitely suspending its $4 per share annual dividend. Specifically, Seadrill cited the need to pay down its $13.2 billion debt to strengthen its balance sheet, despite having previously stated that it would be able to maintain the dividend until at least the end of 2015. Seadrill also disclosed that its board of directors had authorized the repurchase of up to 10% of its outstanding shares. This news was coupled with the company’s poor third quarter results, which noted a 40% decline in net profits from $286 million in the third quarter 2013 to $149 million in the third quarter of 2014.
The complaint also alleges that Seadrill failed to disclose that: (i) the demand for new work for its offshore drilling equipment had fallen; and (ii) the more than sixty new builds entering the global market in 2015 were creating an oversupply of rigs and ships.
Seadrill Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.