Bristow Group Inc.
- Company Name
- Bristow Group Inc.
- Stock Symbol
- Class Period
- February 8, 2018 to February 12, 2019
- Motion Deadline
- April 15, 2019
- Southern District of Texas
The complaint charges Bristow and certain of its officers with violations of the Securities Exchange Act of 1934. Bristow is an industrial aviation services provider with major transportation operations in the North Sea, Nigeria, the Gulf of Mexico and most other major offshore energy producing regions of the world.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business and operations. Specifically, defendants failed to disclose that the Company lacked adequate monitoring processes related to non-financial covenants within its secured financing and lease agreements and that, as a result, the Company could not reasonably assure compliance with certain non-financial covenants and was reasonably likely to breach certain agreements. As a consequence, the Company had understated its short-term debt and the required corrections would materially impact its financial statements. As a result of this information being withheld from the market, Bristow securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $19 per share.
On February 11, 2019, the Company disclosed that it “did not have adequate monitoring control processes in place related to non-financial covenants within certain of its secured financing and lease agreements.” The same day, the Company announced that it had terminated its agreement to purchase Columbia Helicopters, Inc. On this news, the Company’s share price fell $1.22 per share, or nearly 40%, to close at $1.84 per share on February 12, 2019.
Then on February 12, 2019, the Company filed a Form 8-K with the SEC to announce that it had terminated its agreement to purchase Columbia Helicopters, Inc. and that Jonathan E. Baliff would retire as Chief Executive Officer and would resign from the Board of Directors, effective February 28, 2019. On this news, the price of the Company’s shares fell $0.64 per share, or nearly 35%, to close at $1.20 per share on February 13, 2019.