Kirby McInerney LLP Announces Investigation of Shareholder Claims Against Dril-Quip, Inc. (DRQ)

The law firm of Kirby McInerney LLP is investigating potential claims against Dril-Quip, Inc. (“Dril-Quip” or the “Company”) (NYSE: DRQ). The investigation concerns whether Dril-Quip and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.

[Click here to learn more about the investigation]

On July 8, 2024, Dril-Quip disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) that it had identified “an error in the classification of certain inventory write-downs from 2021.” Specifically, the Company 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” and will be restated. Dril-Quip further noted that “the Company’s disclosure controls and procedures as of December 31, 2023 were not effective.” On this news, the price of Dril-Quip shares declined by $1.76 per share, or approximately 9.9%, from $17.77 per share on July 8, 2024 to close at $16.01 on July 9, 2024

If you purchased or otherwise acquired Dril-Quip securities, have information, or would like to learn more about this investigation, contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711331858/en/