NEW YORK, Jan. 21, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that purchasers of ADRs of Seadrill Ltd. ("Seadrill" or the "Company") (NYSE:SDRL) between July 10, 2014 and November 25, 2014 (the "Class Period") have until February 3, 2015 to file a motion to be appointed as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. This class action lawsuit is pending in the United States District Court for the Southern District of New York.
If you want more information about the Seadrill Securities Class Action, please contact Morgan & Morgan at 1-800-732-5200 or email info@morgansecuritieslaw.com
The Class Action complaint alleges that Seadrill, the world's largest offshore drilling contractor, providing offshore drilling services to the oil and gas industry worldwide, and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint also alleges that during the Class Period, defendants made materially false and misleading statements about the strength of the Company's business and prospects. Additionally, Seadrill has historically paid a large dividend, which it raised twice in early 2014 resulting in the Company paying a $1 per share quarterly dividend during the last two quarters of 2014. During the Class Period, defendants maintained that due to the Company's strong business backlog and the strength of its balance sheet, despite any turbulence in the oil industry, the Company would not cut its $4 per share annual dividend. As a result of defendants' Class Period statements, Seadrill ADRs traded at artificially inflated prices, reaching a high of over $38 per ADR in July 2014.
On November 26, 2014, before the markets opened, Seadrill reported disappointing third quarter 2014 financial results (for the period ended September 30, 2014), announcing that it had missed its profit targets. In addition, the Company disclosed that it was indefinitely suspending its dividend, citing the Company's need to pay down its debt to strengthen its balance sheet. The Company also disclosed that its Board of Directors had authorized the repurchase of up to 10% of its outstanding shares. Following this news, the price of Seadrill ADRs fell from $20.71 per ADR to $15.99 per ADR on extremely heavy trading volume, a 58% decline from the ADRs' Class Period high.
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