Dril-Quip, Inc. (DRQ) Investigation: Bronstein, Gewirtz & Grossman, LLC Encourages Investors to Seek Compensation for Alleged Wrongdoings
NEW YORK, July 18, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Dril-Quip, Inc. (“Dril-Quip” or “the Company”) (NYSE: DRQ). Investors who purchased Dril-Quip securities are encouraged to obtain additional information and assist the investigation by visiting the firm’s site: bgandg.com/DRQ.
Investigation Details
On July 8, 2024, Dril-Quip admitted a $67 million accounting error in a recent SEC filing, stating that it identified “an error in the classification of certain inventory write-downs from 2021.” Specifically, Dril-Quip disclosed that it “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 previous statements regarding the Affected Period “should no longer be relied upon.” Dril-Quip further noted that “the Company’s disclosure controls and procedures as of December 31, 2023 were not effective.” Following this news, Dril-Quip stock dropped $1.76 per share, or approximately 9.9%, from $17.77 on July 8, 2024 to close at $16.01 on July 9, 2024.
What's Next?
If you are aware of any facts relating to this investigation or purchased Dril-Quip securities, you can assist this investigation by visiting the firm’s site: bgandg.com/DRQ. You can also contact Peretz Bronstein or his client relations manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.com
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