Dril-Quip(US:DRQ) GlobeNewswire News Roomยท2024-07-13 01:00Core Viewpoint - Dril-Quip, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices following the disclosure of a significant error in inventory write-down classifications [1][3]. Financial Disclosure - On July 8, 2024, Dril-Quip revealed an error in classifying inventory write-downs from 2021, totaling approximately $67 million, which included $19.3 million related to a 2018 strategic plan and $47.7 million due to product discontinuations under a 2021 plan [3]. - The misclassification led to an understatement of 'Cost of sales' and an overstatement of 'Restructuring and other charges' by $67 million for the fiscal year ended December 31, 2021 [3]. - Dril-Quip stated that previous financial statements for the affected period should no longer be relied upon and will be restated [3]. Market Reaction - Following the announcement, Dril-Quip's share price fell by $1.76, or approximately 9.9%, from $17.77 on July 8, 2024, to close at $16.01 on July 9, 2024 [3]. Company Controls - The company acknowledged that its disclosure controls and procedures as of December 31, 2023, were not effective [3].