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Published January 16, 2025
Transocean’s stock price sank after it sold two of its rigs for a $630 million loss. Now, stunned investors are suing the Company to recover some of their damages.
Transocean provides offshore drilling for oil and gas. Two of its rigs sat idle since mid-2023. But, Transocean consistently assured investors that the value of its property and equipment remained stable. Transocean also told investors it based the valuation on “fair market value.”
In August 2024, a financial analysts asked Transocean’s CEO about the idle rigs. The CEO said the rigs remained “strategic assets” and the Company was just looking for the right project. That wasn’t true.
In September 2024 the Company sold both rigs, calling them “non-strategic assets.” The Company recorded a $630 million impairment on the sale, suggesting the rigs had been severely overvalued all along.
Shocked investors rapidly sold off their shares, causing Transocean’s stock price crashing 9% in less than a day. Now, some of those stunned investors are taking legal action.