Story ID: 137aMarch19
Shareholder Suit Lodged Against Bristow
By: Mark Huber
Caption: Suit charges Bristow executives with making "materially false" statements about the company's finances. 
Word Count: 356
The first of what could be several class action lawsuits on behalf of shareholders who have suffered substantial losses was filed on February 14 against Bristow Group in U.S. District Court for the Southern District of Texas, Houston Division. The civil suit charges Bristow, CEO Jonathan Baliff and CFO L. Don Miller with multiple violations of U.S. securities rules beginning on February 8, 2018 and running through February 11, 2019, the date the company disclosed “material weakness” in its internal controls over financial reporting. That disclosure triggered a sell-off in Bristow stock.  

Specifically, the suit charges that the defendants made “materially false and/or misleading statements as well as failed to disclose materially adverse facts about the company’s business, operations, and prospects” including the fact “(1) that the company lacked adequate monitoring processes related to non-financial covenants within its secured financing and lease agreements; (2) that, as a result, the company could not reasonably assure compliance with non-financial covenants; (3) that, as a result, the company was reasonably likely to breach certain agreements; (4) that, as a result, the company had understated its short-term debt; (5) the required corrections would materially impact financial statements; (6) that there was material weakness in the company’s internal controls over financial reporting; and (7) that, as a result of the foregoing, defendant’s positive statements about the company’s business, operations, and prospects were materially misleading and lacked a reasonable basis.”  

The suit contends that Bristow’s alleged misstatements constitute violations of the Exchange Act. The suit characterizes these violations as “substantial acts in furtherance of the alleged fraud.” The suit charges that Baliff and Miller “knew that the adverse facts specified herein had not been disclosed to, and were being concealed from, the public, and that the positive representations which were being made were then materially false and/or misleading.” The suit alleges that Bristow’s failure to disclose resulted in its shares trading at inflated prices for much of the “class period” (February 2018—February 2019), thereby damaging shareholders. 

The lawsuit was filed by the Kendall Law Group of Dallas and Glancy, Prongay & Murray of Los Angeles. 
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