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Weatherford International plc Class Action Lawsuit

18 days left to seek lead plaintiff status

Case Summary

Company Name
Weatherford International plc
Stock Symbol
WFTIQ
Class Period
October 26, 2016 to May 10, 2019
Motion Deadline
November 5, 2019
Court
Southern District of Texas

On September 6, 2019, the Weatherford International plc class action lawsuit was filed  charging certain of Weatherford’s current and former officers and directors and the underwriter of Weatherford’s November 2016 secondary offering with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933.  The Weatherford class action lawsuit was commenced in the United States District Court for the Southern District of Texas on behalf of all persons or entities that purchased or otherwise acquired common stock of Weatherford during the period of October 26, 2016 through May 10, 2019 (the “Class Period”) and/or pursuant or traceable to Weatherford’s secondary offering of common stock that closed on or about November 21, 2016 (the “Equity Offering”) and is captioned GAMCO Asset Management, Inc. v. McCollum, No. 4:19-cv-03363. 

Weatherford is one of the world’s leading providers of equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells.  In May 2019, Weatherford announced it was initiating Chapter 11 bankruptcy proceedings.  On November 16, 2016, Weatherford filed with the U.S. Securities and Exchange Commission  a Preliminary Prospectus Supplement and a Post-Effective Amendment to an Automatic Shelf Registration Statement (the “Offering Documents”) for the issuance of 84.5 million ordinary shares at $5.40 per share.  The Equity Offering closed on November 21, 2016, generating gross proceeds of $456 million. 

The Weatherford class action lawsuit alleges the Offering Documents were false and materially misleading and omitted material facts about Weatherford’s financial condition in violation of §§11 and 15 of the 1933 Act.  In addition, the Weatherford class action lawsuit alleges that during the Class Period, defendants made materially false and misleading statements and/or omitted material adverse facts concerning Weatherford’s purported “recovery” and “transformation plan” and, relatedly, Weatherford’s ability to manage its debt and avoid bankruptcy.  As a result of defendants’ false and misleading statements and omissions, Weatherford’s stock traded at artificially inflated prices during the Class Period, reaching highs of more than $6.50 per share.  Then, on May 10, 2019, Weatherford announced it had entered into a restructuring plan with its noteholders and would be filing for bankruptcy protection.  As a result of this announcement, the price of Weatherford stock fell 85% to close at $0.05 per share on May 13, 2019.  

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Weatherford common stock during the Class Period and/or pursuant or traceable to Weatherford’s Equity Offering to seek appointment as lead plaintiff in the Weatherford class action lawsuit.  A lead plaintiff will act on behalf of all other class members in directing the Weatherford class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Weatherford class action lawsuit. An investor’s ability to share in any potential future recovery of the Weatherford class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Weatherford class action lawsuit or have questions concerning your rights regarding the Weatherford class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com.  Lead plaintiff motions for the Weatherford class action lawsuit must be filed with the court no later than November 5, 2019.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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