Robbins LLP: CHC Group Ltd (HELI) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of CHC Group Ltd (NYSE: HELI) has filed a federal securities fraud class action complaint in the Supreme Court of the State of New York, County of New York The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with CHC Group’s January 16, 2014 initial public offering. CHC Group provides commercial helicopter services to the offshore oil and gas industry worldwide.
CHC Group Misrepresents Its Business Practices
According to the complaint, CHC Group failed to disclose in its registration statement for the company’s initial public offering, that one of the company’s top two clients had stopped making payments on its contracts with CHC Group. It was not until a July 10, 2014 earnings call to discuss the company’s fourth quarter financials that the truth emerged. Specifically, CHC Group’s Chief Financial Officer disclosed that Petroleo Brasileiro S.A. had stopped making payments on contracts to CHC since April 2013. This was approximately ten months prior to the filings of CHC Group’s Prospectus. Additionally, the CFO disclosed that the company did not expect to recover revenues relating to the contract, that guidance for future quarters would not reflect any recovery, and that CHC’s revenues for fiscal 2014 would come in at the bottom of the company’s guidance ranges. On this news, CHC Group shares declined over 18% to close at $7.28 per share on July 14, 2014.
CHC Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.