Pomerantz LLP is investigating claims on behalf of investors of Dril-Quip, Inc. (“Dril-Quip”or the “Company”)(NYSE: DRQ). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.comor 646-581-9980, ext.7980.
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The investigation concerns whether Dril-Quipand certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On July 8, 2024, Dril-Quip disclosed in a filing with the U.S. Securities and Exchange Commission that it had identified “an error in the classification of certain inventory write-downs from 2021.” Specifically, the Company disclosed that it “misclassified inventory write-downs from 2021 totaling approximately $67 million, including $19.3 million related to the 2018 global strategic plan and approximately $47.7 million due to the discontinuation of certain product categories under the 2021 global strategic plan. The Company classified these charges as ‘Restructuring and other charges’; however, these charges should have been classified in ‘Cost of sales’ in the Consolidated Statement of Income (Loss) for the fiscal year ended December 31, 2021, in accordance with ASC 420-10-S99-3. As a result, ‘Cost of sales’ was understated and ‘Restructuring and other charges’ was overstated by $67 million for the fiscal year ended December 31, 2021 (the ‘Affected Period’).” Accordingly, Dril-Quip stated that its prior statements regarding the Affected Period “should no longer be relied upon” and will be restated. Dril-Quip further stated that “the Company’s disclosure controls and procedures as of December 31, 2023 were not effective.”
On this news, Dril-Quip’s stock price fell $1.76 per share, or 9.9%, to close at $16.01 per share on July 9, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:Danielle PeytonPomerantz LLPdpeyton@pomlaw.com646-581-9980 ext. 7980
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