CASES
DryShips, Inc. (2012)
Class Period: Dec 1, 2008 to Dec 31, 2010
Lead Plaintiff Deadline: Apr 16, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against DryShips, Inc. ("DryShips") on behalf of a class, consisting of all those who (1) purchased or otherwise acquired the securities of DrysShips pursuant and/or traceable to the company's Registration Statement issued in connection with the company's and (2) purchased or otherwise acquired the securities of DryShips between December 01, 2008 to December 31, 2010. This case has been filed in the USDC - Missouri (Eastern).
The claims arise from a series of materially false and misleading statements and omissions by DryShips, its officers and executives in connection with (i) DryShips' spin-off of 100% wholly owned subsidiary of DryShips', Primelead Shareholders Inc. ("Primelead"), later renamed Ocean Rig UDW; (ii) DryShips' financial health and (iii) its ability to comply with loan covenants. Furthermore, the complaint alleges that plaintiffs suffered serious harm as a result of number of violations of law committed by DryShips' officers and directors, and by violations of law committed by officers and directors of Merrill Lynch & Co. ("Merrill") and Deutsche Bank AG ("Deutsche Bank") who acted as underwriters for secondary stock offerings ("Underwriter Defendants").
This complaint further alleges that it was entirely foreseeable to DryShips, its officers and executives, as well as the DryShips Board that concealing from investors (i) DryShips deteriorating financial condition, (ii) DryShips intent to raise equity, (iii) the circumstances surrounding the spin-off and/or IPO, including DryShips' ability to secure charters and financing, would artificially inflate the price of DryShips common stock. Plaintiff alleges that it was similarly foreseeable that the ultimate disclosure of this information and, in particular, the truth about DryShips' ability to comply with its loan covenants and drillships IPO, would cause the price of DryShips' securities to drop significantly as the inflation caused by their earlier misstatements was removed from stock.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.