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Archive for the ‘Seadrill Ltd.’ Category

Mark Heiden Losses at Wedbush? Aidikoff, Uhl & Bakhtiari Announces the Filing of a FINRA Arbitration Claim Seeking More than $1.1 Million On Behalf Of Former Customers of Wedbush Securities, Inc. broker Mark Heiden

Aidikoff, Uhl & Bakhtiari announces the filing of a FINRA arbitration seeking more than $1.1 million and its continuing investigation of the sales practices of Mark Heiden for his management of client accounts and the overconcentration of energy related stocks investments:

  • Energy XXI Bermuda Ltd.
  • Clearbridge American Energy MLP
  • Goldman Sachs MLP Energy
  • Arch Coal
  • Seadrill

We are currently investigating whether all material risks of the recommended investments were disclosed to clients as well as whether Wedbush broker, Mark Heiden, implemented an appropriate risk management strategy.

“Mark Heiden’s transactions in the energy sector raise serious concerns about the level of supervision Wedbush chose to exercise,” added Philip Aidikoff.

“The level of concentration in energy related securities posed a risk that customers could not appreciate,” said Ryan Bakhtiari.

To discuss your options please contact an attorney below.

Aidikoff, Uhl & Bakhtiari represents retail and institutional investors around the world in securities arbitration and litigation matters. Attorneys for the firm have appeared before the Financial Industry Regulatory Authority (FINRA) and in numerous state and federal courts to resolve financial disputes between customers, banks, brokerage firms and other financial institutions.

Philip M. Aidikoff, pma@aublaw.com
Ryan K. Bakhtiari, rkb@aublaw.com
Aidikoff, Uhl & Bakhtiari
(800) 382-7969 Toll Free or (310) 274-0666

Seadrill Ltd. Class Actions Combine Their Stock and Options Claims

A Manhattan federal judge on Tuesday consolidated three fraud class action suits claiming Bermuda-based Seadrill Ltd. misled investors with vows to preserve its chunky dividend payments, adding to the original stock-purchasing plaintiffs a new universe of claimants who bought options in the offshore drilling giant.

U.S. District Judge Lorna G. Schofield’s move set up a potential squabble over which plaintiff would lead.

Plaintiffs including Issek Fuchs sued in December, on behalf of stock purchasers who saw Seadrill’s share value drop after the company announced in November that it would suspend dividends. Stock-purchase plaintiff Ron Heron followed with a suit in January. Then in March, plaintiff Sheldon Glow sued on behalf of stock and options investors.

Judge Schofield said Tuesday that “there is a basis to consolidate.” She called for a new round of notice to potential class members to clarify that options claims were in play. She also called for briefing on how to select a lead plaintiff or whether to potentially select two leads — one for buyers of Seadrill’s U.S.-traded equity and another for options traders.

Seadrill’s counsel said Tuesday it would respond after consolidation was complete.

The company “shocked the market” on Nov. 26, when it disclosed that it would be suspending its annual $4-per-share dividend, causing the price of its American depository receipts to plunge that day from $20.71 to $15.19.

That big miss came after Seadrill’s summer 2014 statements that the company was “in the best possible financial situation” and enjoyed “significant flexibility to support the dividend,” the plaintiffs claim.

On raising its quarterly dividend from $0.98 to $1 per share in May 2014, Seadrill had called the move “sustainable in the coming years,” the suits say.

But Seadrill management knew its statements were materially false and misleading, the plaintiffs allege.

Seadrill Turns to Loss on $1.8 Billion Writedown in Oil Rout

Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, reported its first quarterly loss since 2011 as a collapse in oil prices reduced demand for its rigs.

The net loss of $1.83 billion came after the Hamilton, Bermuda-based company booked $1.8 billion in non-cash impairment charges to investments and goodwill, it said in a statement. Earnings before interest, taxes, depreciation and amortization fell 14 percent to $546 million from a year earlier, beating the $506 million average estimate in a Bloomberg survey of 21 analysts.

Seadrill rose as much as 6.5 percent in Oslo, the most since Nov. 16, and the shares closed 2.9 percent higher at 55 kroner, bringing losses over the past 12 months to 61 percent.

Seadrill and other offshore-rig owners such as Transocean Ltd. and Ensco Plc are suffering as oil companies cut investments after crude prices fell to about $45 a barrel from a high of $115 in June 2014. Demand is weakening at the same time as the market faces a glut of new vessels, prompting drillers to cut dividends, defer newbuild deliveries and renegotiate contracts to weather the downturn.

The company said $1.1 billion of the impairment charge was related to its ownership in Seadrill Partners LLC and $563 million came after a test on goodwill.

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