Valaris plc (NYSE: VAL) Investor Securities Class Action Lawsuit 08/20/2019

If you purchased shares of Valaris plc (NYSE: VAL), you have certain options and for certain investors are short and strict deadlines running. Deadline: October 21, 2019. NYSE: VAL investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Case Name: 
Valaris Shareholder Class Action Lawsuit 08/20/2019
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 

An investor in shares of Valaris plc (NYSE: VAL) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Valaris plc in connection with certain allegedly false and misleading statements made between April 11, 2019 and July 31, 2019.

London, UK based Valaris plc provides offshore drilling services in various water depths worldwide. Valaris plc reported that its annual Total Revenue declined from $1.84 billion in 2017 to $1.7 billion in 2018 and that its Net Loss increased from $303.7 million in 2017 to $639.7 million in 2018.
On July 31, 2019, Valaris plc announced its second quarter 2019 financial results—purportedly its first earnings report post-merger reflecting the results of the combined company—which missed market expectations (the “2Q 2019 Press Release”). Upon issuance of the 2Q 2019 Press Release, an article was published on August 2, 2019, entitled “Valaris PLC - Off To A Bad Start”, noting that Valaris’s 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 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.”

Shares of Valaris plc (NYSE: VAL) declined to $3.58 per share on August 15, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Valaris plc (NYSE: VAL) common shares between April 11, 2019 and July 31, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 11, 2019 and July 31, 2019, the defendants failed to disclose to investors that the Company was plagued by a weak ultra-deepwater segment, massive cash usage, and significant negative cash flow, that the foregoing was reasonably likely to have a material negative impact on the Company’s second quarter 2019 results, that the merger leading to Valaris’s establishment could not deliver on its touted benefits, and that as a result, the Company’s public statements were materially false and misleading at all relevant times.