Shareholder Investigation of Valaris plc
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Valaris plc (VAL) Accused of Misleading Shareholders
In April 2019, Ensco and Rowan Companies plc merged to form Ensco Rowan plc, now known as Valaris plc. In a press release issued on April 11, 2019, the company touted its “diverse rig fleet” that purportedly enabled Valaris to “provide drilling services across all water depths with unmatched scale” and emphasized the financial strength and growth opportunities generated by the merger. On July 31, 2019, Valaris announced its second quarter 2019 financial results, which missed market expectations. Then, Seeking Alpha published an article on August 2, 2019, noting that Valaris’s results “shock[ed] investors” and criticizing Valaris’s massive cash usage and free cash flow, which was negative by over $375 million. Additionally, Wells Fargo downgraded Valaris from Outperform to Market Perform. On this news, Valaris’s stock price fell $3.25, or approximately 39%, over the two trading sessions following the announcement of its quarterly financial results, closing at $5.02. The stock continues to decline and now trades as just $4.48.
Valaris plc (VAL) Shareholders Have Legal Options
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