Dril-Quip, Inc. (DRQ) Investigation: Bronstein, Gewirtz & Grossman, LLC Encourages Investors to Seek Compensation for Alleged Wrongdoings

/EIN News/ -- 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.

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Contact

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.com