A securities class action has been filed in the USDC — S.D.N.Y. against Transocean Ltd. (RIG) (“Transocean” or the “Company”), on behalf of all those that purchased or otherwise acquired Transocean securities, between October 31, 2023, and September 2, 2024, both dates inclusive (the “Class Period”).
Transocean, together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. Transocean currently owns or operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floating rigs and eight harsh environment floating rigs. The Company’s rigs are categorized as under contract, “idle,” or “stacked.” An “idle” rig is one being held between contracts and readily available for operations. A “stacked” rig, on the other hand, is minimally manned or unmanned and typically is expected to continue to be inactive for an extended period. The Company provides monthly fleet updates as to the status of its ships. As of October 18, 2023, the Company had 13 stacked or idle rigs. Of those 13, two were marked idle: the Discoverer Inspiration (as of April, 2023) and the Development Driller III (as of August, 2023).
The Complaint alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) the Discoverer Inspiration and the Development Driller III were considered non-strategic assets;
(2) the Company’s recorded asset valuations were overstated;
(3) as a result, the Company would take nearly twice the vessels’ sale price in impairment if sold; and
(4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
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