Weatherford International Ltd (NYSE: WFT) Investor Securities Class Action Lawsuit 03/11/2011

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Company Name(s): 
Weatherford International
Case Name: 
Weatherford International Shareholder Class Action Lawsuit 03/11/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: WFT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/04/2011
Class Period Begin: 
04/25/2007
Class Period End: 
03/01/2011
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/10/2011
Date Settled: 
01/30/2015
Settlement Amount: 
$52,500,000
Deadline to Participate in Settlement: 
08/19/2014
Summary: 

January 30, 2015 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys' fees and expenses, and dismissed the action with prejudice.

September 15, 2014 - The court held a final settlement hearing.

April 1, 2014 - The court preliminarily approved the settlement.

January 29, 2014 - Parties filed a stipulation of settlement.

November 7, 2012 - The court granted in part and denied in part the motion to dismiss of one defendant and granted the motion to dismiss of another defendant.

September 30, 2011 - The defendants filed an motion to dismiss.

August 26, 2011 - The lead plaintiff filed an amended consolidated complaint.

June 27, 2011 - Lead plaintiff and lead counsel were appointed.

May 9, 2011 - Lead plaintiff motions were filed.

March 8, 2011 - Another investor filed a complaint.

March 4, 2011 - An investor in shares of Weatherford International Ltd (NYSE: WFT) filed a lawsuit in the U.S. District Court for the District of Central California against Weatherford International Ltd over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 25, 2007 and March 1, 2011.

According to the complaint the plaintiff alleges that Weatherford International Ltd and certain of its officers violated the Securities Exchange Act of 1934 by knowing or recklessly disregarding between April 25, 2007 and March 1, 2011 that certain statements concerning Weatherford International Ltd's business, operations and prospects were materially false and misleading.

While Weatherford International Ltd’s 12 months Total Revenue went from $7.832 billion in 2007 to $10.211 billion in 2010, its Net Income on the other hand decreased from a substantial $1.091 billion in 2007 to $24.51 million in 2010.

Weatherford International Ltd shares (NYSE: WFT) fell 11% on March 2 after it said it would have to restate its financial statements and delay its annual report because of accounting problems. Weatherford International Ltd said it expects that it will have to make adjustments to its historical financial statements and its 2010 fourth quarter earnings, “totaling approximately $500 million for the periods from 2007 to 2010.” Most of the problems related to “an error in determining the tax consequences of intercompany amounts over multiple years.” Weatherford International Ltd said it now plans to file that financial statement by March 15. Chief Financial Officer Andrew Becnel said during a conference call Wednesday with investors that the mistakes are an "embarrassment" that is "difficult, if not impossible, to quantify."

In its Tuesday filing, Weatherford International Ltd also said its operations in Tunisia, Egypt, and Libya were disrupted by political revolutions and uprisings in these countries. During 2010, Tunisia, Egypt, Libya, Yemen and Bahrain accounted for approximately 3% of Weatherford International Ltd's global revenue.

Weatherford International Ltd is currently also under the investigation by the U.S. Department of Commerce, the Bureau of Industry & Security, the Office of Foreign Assets Control, the Department of Justice and the U.S. Securities and Exchange Commission (SEC) for various possible violations. Weatherford Intl Ltd disclosed the investigations through filings with the SEC. The current ongoing investigations include: Weatherford International Ltd's participation in the oil-for-food program in Iraq, allegations of "improper sales of products and services" by Weatherford International Ltd and its subsidiaries in "certain sanctioned countries," and possible violations of the Foreign Corrupt Practices Act. In the 2009 annual report filed with the SEC, Weatherford International Ltd announced costs that included $106 million for legal and professional fees, $56 million in connection with their exit from certain sanctioned countries in 2008, and $45 million and $47 million in 2008 and 2009 respectively, in connection with the on-going investigations, so the investigation. Weatherford International Ltd also stated that the "agencies likely will seek to impose penalties...for past conduct."

Shares of Weatherford International Ltd (NYSE: WFT) traded recently at $20.59 per share. Weatherford International Ltd shares are down from its 52 week High of $26.25 per share and over $48 per share in 2008.