NEW YORK (TheStreet) -- Shares of Seadrill (SDRL) are plummeting, down 5.28% to $11.67 in afternoon trading Monday, as law firms Abraham, Fruchter & Twersky, Bronstein, Gewirtz & Grossman, and the Law Offices of Marc S. Henzel all filed a securities fraud class action against the offshore drilling company.
Abraham, Fruchter & Twersky filed the securities fraud class action against the company and certain of its senior executives in the U.S. District Court for the Southern District of New York.
The law firm is alleging that the defendants made false or misleading statements regarding its commitment and ability to continue to pay a dividend to the exclusion of other opportunities and needs for the same capital.
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The lawsuit is brought on behalf of a class of investors who purchased shares of Seadrill between July 10, 2014 and November 25, 2014. On November 26, the company announced that it had decided to suspend payment of its dividend.
Similarly Bronstein, Gewirtz & Grossman and the Law Offices of Marc S. Henzel also filed the class action alleging that the company violated federal securities laws.
Separately, TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: