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George Economou caught up in DryShips lawsuit

George Economou caught up in DryShips lawsuit

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DryShips and its chairman and chief executive officer George Economou have been named as defendants in a lawsuit filed in the High Court of the Marshall Islands which alleges breaches of fiduciary duty, unjust enrichment, and conflict of interest.

The plaintiff is seeking compensatory and punitive damages as well as a temporary restraining order and preliminary injunction to suspend any further issuances of new common shares by DryShips below a price specified by the plaintiff.

DryShips said that it has reviewed the complaint and motion, believes them to be without merit and will contest them vigorously.

In May, DryShips was deemed the worst listed company for corporate governance in a regularly updated poll carried by investment bank Wells Fargo and its equity analyst Michael Webber.

Several national securities law firms have also launched investigations into potential securities fraud at the company citing an article in The Wall Street Journal which reported a series of stock sales worth more than $500m and additional stock sales to Kalani Investments may have yielded Economou millions.

DryShips shares closed trading today at $1.03, down 18.9%. Since the beginning of the year, DryShips shares have dropped 99.975%.

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Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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