DRQ - Kirby McInerney LLP Announces Investigation of Shareholder Claims Against Dril-Quip Inc. (DRQ)
The law firm of Kirby McInerney LLP is investigating potential claims against Dril-Quip, Inc. (“Dril-Quip” or the “Company”) (NYSE: DRQ). The investigation concerns whether Dril-Quip and/or certain of its officers have violated the federal securities laws and/or engaged in 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 (SEC) 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 previous statements regarding the Affected Period “should no longer be relied upon” and will be restated. Dril-Quip further noted that “the Company’s disclosure controls and procedures as of December 31, 2023 were not effective.” On this news, the price of Dril-Quip shares declined by $1.76 per share, or approximately 9.9%, from $17.77 per share on July 8, 2024 to close at $16.01 on July 9, 2024
If you purchased or otherwise acquired Dril-Quip securities, have information, or would like to learn more about this investigation, contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com , or by filling out this CONTACT FORM , to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com