(PRWEB) February 13, 2012
Lutovich Law LLC announces that a class action lawsuit, case no. 4:12-cv-00130-JCH, Rabbani v. DryShips, et.al., has been filed in the United States District Court for the Eastern District of Missouri on behalf of purchasers of DryShips Inc. (“Dryships” or the “Company”) who purchased shares between December 1, 2008 and December 31, 2010, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”) and the Securities Act of 1933 (the “Securities Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Julia Lutovich, at 314-898-3054 or via e-mail at julia.lutovich(at)lutovichlaw(dot)com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
This action involves a series of materially false and misleading statements and omissions by DryShips, its officers and executives in connection with (i) DryShips’ spin-off of 100% wholly owned subsidiary of DryShips’, Primelead Shareholders Inc. (“Primelead”), later renamed Ocean Rig UDW; (ii) DryShips’ financial health and (iii) its ability to comply with loan covenants. Furthermore, this complaint alleges that plaintiffs suffered serious harm as a result of number of violations of law committed by DryShips’ officers and directors, and by violations of law committed by officers and directors of Merrill Lynch & Co. (“Merrill”) and Deutsche Bank AG (“Deutsche Bank”) who acted as underwriters for secondary stock offerings (“Underwriter Defendants”).
This complaint further alleges that it was entirely foreseeable to DryShips, its officers and executives, as well as the DryShips Board that concealing from investors (i) DryShips deteriorating financial condition, (ii) DryShips intent to raise equity, (iii) the circumstances surrounding the spin-off and/or IPO, including DryShips' ability to secure charters and financing, would artificially inflate the price of DryShips common stock. Plaintiff alleges that it was similarly foreseeable that the ultimate disclosure of this information and, in particular, the truth about DryShips' ability to comply with its loan covenants and drillships IPO, would cause the price of DryShips' securities to drop significantly as the inflation caused by their earlier misstatements was removed from stock.
Lutovich Law, LLC is a St. Louis, Missouri law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation, including shareholder class action and derivative litigation.
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