Dril-Quip(US:DRQ) Prnewswire·2024-07-15 20:30Core Viewpoint - Dril-Quip, Inc. has disclosed significant errors in its financial statements for the fiscal year ended December 31, 2021, leading to a potential class action investigation by Rosen Law Firm due to allegations of misleading business information [2][3][4]. Financial Disclosure - Dril-Quip reported an error in the classification of inventory write-downs from 2021, which were incorrectly classified as "Restructuring and other charges" instead of "Cost of sales." This misclassification resulted in an understatement of "Cost of sales" and an overstatement of "Restructuring and other charges" by $67 million for the affected period [4]. Audit Committee Findings - The Audit Committee of Dril-Quip concluded that the consolidated financial statements for the affected period should no longer be relied upon due to the identified error. Additionally, the company's disclosure controls and procedures as of December 31, 2023, were deemed ineffective [2]. Market Reaction - Following the announcement of the financial misstatements, Dril-Quip's stock price fell by 9.9% on July 9, 2024 [8]. Legal Implications - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Dril-Quip, indicating that investors may be entitled to compensation through a class action lawsuit [3][7].