SOURCE: Milberg LLP

July 09, 2010 11:13 ET

Milberg LLP Announces the Filing of a Securities Fraud Class Action Lawsuit Against Transocean, Ltd. -- (NYSE: RIG)

NEW YORK, NY--(Marketwire - July 9, 2010) -  The law firm of Milberg LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons who purchased Transocean, Ltd. ("Transocean" or the "Company") (NYSE: RIG) securities during the period from August 5, 2009, to June 1, 2010, inclusive (the "Class Period"). Transocean is the owner and operator of 139 mobile offshore drilling units, and provides the mobile offshore drilling units and services that oil companies worldwide use to find and develop oil and natural gas reserves. The action is captioned Foley v. Transocean, Ltd., et al., and is numbered 10-CV-5233. The complaint is available from the Court or can be viewed at Milberg LLP's website at www.milberg.com.

The complaint charges Transocean and certain of its trustees and officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. According to the complaint, prior to and during the Class Period Defendants were informed of the serious risks associated with the blowout preventors ("BOPs") on Transocean's ultra-deepwater drilling engagements. Despite this knowledge, Defendants disseminated false and misleading statements and/or failed to disclose material information concerning: (i) Transocean's deficient safety efforts and safety violations; (ii) the heightened hazards associated with the BOPs used by the Company; (iii) the likelihood that the equipment required to drill at depths such as those encountered by the Deepwater Horizon would render Transocean's safety protocols, including those relating to the BOPs, ineffective; and (iv) the Company's significant exposure to liability as a result of these unmitigated hazards.

Beginning on April 20th, and continuing until June 1, 2010, the public began to learn of Transocean's misrepresentations and the magnitude of those risks to the Company and its businesses, which caused Transocean's stock to drop. On April 20, 2010, while drilling at a well off the Louisiana coast and on the outer continental shelf in the Gulf of Mexico, an explosion onboard Transocean's ultra-deepwater semi-submersible drilling rig Deepwater Horizon caused a fire which resulted in the death of eleven crew members, nine of whom were Transocean employees, and the injury of seventeen others. The rig sank on April 22, 2010. These incidents led to the ongoing massive oil spill in the Gulf of Mexico which has affected an estimated surface area of thousands of miles. 

As a result of Defendants' false and misleading statements and/or omissions, Transocean securities traded at inflated levels during the Class Period. As the truth about the full extent of the disaster was absorbed by the market in the weeks following the explosion and oil spill, Transocean shares fell almost $45 per share from the Class Period high of $94.88 on January 11, 2010, to close at $50.04 on June 1, 2010, an approximate 47% drop, wiping out $13.4 billion in market value as of June 1, 2010.

If you purchased any class of shares of Transocean from August 5, 2009, through June 1, 2010, you may move the court no later than July 12, 2010, and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You can recover as an absent class member without moving for lead plaintiff. You may retain Milberg LLP, or other attorneys, to serve as your counsel in this action.

The complaint has been filed as a class action on behalf of all persons who own Transocean securities. No class has yet been certified, and there can be no guarantee that a class will be certified.

About Milberg

Milberg LLP is widely recognized as the premier class action and complex litigation firm, representing individual and institutional investors, pension funds, hedge funds, unions, and consumers. Founded in 1965, Milberg has offices in New York, Los Angeles, Tampa, and Detroit. The firm has taken the lead in landmark cases that have set groundbreaking legal precedents and prompted changes in corporate governance benefiting shareholders in North America and abroad. Please visit the Milberg website (www.milberg.com) for more information about the firm. 

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Contact Information

  • If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

    Peter Safirstein, Esq.
    Andrei V. Rado, Esq.

    Milberg LLP
    One Pennsylvania Plaza, 49th Fl.
    New York, NY 10119-0165
    Phone number: (800) 320-5081
    Email: contactus@milberg.com