George Economou’s DryShips is the focus of an investigation by several US national securities law firms, who are looking into potential securities fraud at the company.
Bronstein, Gewirtz & Grossman, Faruqi & Faruqi, Rosen Law Firm, and Scott+Scott said investigations focus on whether DryShips and its executives violated federal securities laws by failing to disclose material non-public information.
The law firms cite an article in The Wall Street Journal which reported that Nasdaq-listed DryShips began to make a series of stock sales worth more than $500m the day after DryShips shares peaked between in November 2016 from $163 to $2,336 per share. The report also cited DryShips selling its stock to Kalani Investments, which then sold the stock to “small investors” and how the chain of events could have potentially yielded Economou tens of millions in profit.
Investors who have lost money by investing in DryShips are being asked to contact the firms. One of the firms, Rosen Law Firm, said it is already preparing a class action lawsuit to recover losses suffered by DryShips investors.
DryShips shares are currently trading at $1.05, down more than 18% for the day, and nearly 97% lower than at the start of the year.