NEW YORK, NY / ACCESSWIRE / August 8, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Dril-Quip, Inc. ("Dril-Quip") (NYSE:DRQ) concerning possible violations of federal securities laws.
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 had "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. To obtain additional information, go to:
https://zlk.com/pslra-1/dril-quip-lawsuit-submission-form?prid=94679&wire=1
or contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212)363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
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Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
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Tel: (212)363-7500
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SOURCE: Levi & Korsinsky, LLP