Transocean LTD (NYSE: RIG) Investor Securities Class Action Lawsuit 05/13/2010

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Company Name(s): 
Transocean LTD
Case Name: 
Transocean LTD Shareholder Class Action Lawsuit 05/13/2010
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: RIG
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/13/2010
Class Period Begin: 
08/05/2009
Class Period End: 
07/23/2010
Court of Filing: 
U.S. District Court for the Eastern District of Louisiana
Deadline To File for Lead: 
07/12/2010
Case Dismissed: 
03/20/2012
Summary: 

March 20, 2012 - The court granted the defendants' motion to dismiss.

May 17, 2011 - The defendants filed a motion to dismiss.

March 18, 2011 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Transocean Ltd (NYSE: RIG) common shares between August 5, 2009 and July 23, 2010. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between August 5, 2009 and July 23, 2010.

March 9, 2011 - All cases were consolidated.

January 3, 2011 - Lead plaintiff and lead counsel were appointed.

September 27, 2010 - Another investor filed a complaint.

July 12, 2010 - Lead plaintiff motions were filed.

July 9, 2010 - Another investor filed a complaint.

June 8, 2010 - Another investor filed a complaint.

May 13, 2010 - An investor in shares of Transocean Ltd (NYSE: RIG) filed a lawsuit in the U.S. District Court for the Eastern District of Louisiana against Transocean Ltd over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between August 5, 2009 and May 7, 2010.

According to the complaint the plaintiff alleges that Transocean Ltd and its Chief Executive Officer violated Securities Exchange Act of 1934, between August 5, 2009 and May 7, 2010, in connection with the dissemination of false and misleading statements about its deficient safety protocols, recurring blowout preventer (BOP) problems, and its operating and safety record.

The complaint alleges that in the last ten years, the defendants have been apprised of the serious hazards associated with Transocean Ltd's use of certain blowout preventers on ultra-deepwater drilling engagements. Despite these warnings and defendants' knowledge that a blowout preventer failure would likely result in scores of fatalities and millions of gallons of oil being released into the surrounding waters, defendants opted to conceal their knowledge of these known hazards while making false and misleading statements throughout 2009 and into 2010. Then, on April 20, an explosion on the Deepwater Horizon offshore drilling rig operating off the coast of Louisiana resulted in a fire that sank the rig, caused a large-scale ongoing oil spill leaking an estimated 5,000 barrels of oil a day, and killed 11 workers including nine Transocean Ltd employees.

Even though the cause of the explosion is still under investigation more than two dozen lawsuits have reportedly already been filed claiming the explosion was caused when workers for oil services contractor Halliburton Inc. improperly capped the well, a process known as cementing. Executives representing Transocean Ltd and Halliburton reportedly will say BP had the lead decision-making role. But Lamar McKay, chairman of BP America Inc., said in testimony prepared for a Senate Energy Committee hearing that “Transocean Ltd’s blowout preventer failed to operate”. Transocean Ltd shares have dropped 28 percent since the April 20 explosion. While Transocean Ltd stock (NYSE: RIG) was trading as High as $94.88 per share at its 52 week High and in the excess of $90 per share as early as in Mid-April it slide to under $66.69 per share, and traded recently at $66.34 per share.

Transocean Ltd, located in Switzerland, is an international provider of offshore contract drilling services for oil and gas wells. As of February 2, 2010, its fleet of 138 rigs consisted of 44 High-Specification Floaters, including the Deepwater Horizon rig.