From 2007 to 2012, the SEC claims Weatherford International overstated its earnings by more than $900 million in violation of GAAP and subsequently restated its financials three separate times over an 18-month period.
The SEC has established a $152 million Fair Fund for distribution to harmed investors who purchased or acquired Weatherford common stock during a 44-month period. FRT recommends that investors begin gathering the necessary data today to navigate multiple challenges we expect claimants will face.
Fair Fund Details
- Claim Deadline: Sept. 26, 2024
- Class Period: Feb. 25, 2009 – Nov. 12, 2012
- Fund Distribution Total: $152,204,174
Key Claimant Challenges
Investors seeking to participate in the Weatherford Fair Fund face two major obstacles:
1. The Fair Fund claim period is more than 10 years old, well beyond the time period for which custodians are required to maintain client records. This could make obtaining documentation required by the SEC challenging for investors who have since changed custodians or closed funds.
2. There were two prior, separate Weatherford securities class action settlements related to similar underlying fraud allegations albeit – with different class periods. This complicates recovery for eligible claimants who previously submitted claims in either (or both) matters.
Furthermore, if an institution filed and received payment for these earlier securities class action settlements, the SEC has decided to automatically carry over any data provided for the prior two claim forms.
FRT is already working with clients to optimize their claim submissions and to provide updated filing instructions that satisfy the SEC’s strict requirements. If you’d like to explore your firm’s filing options for this matter, consider booking a 1-1 call with our legal experts to discuss further.
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