According to the law firm press release, the case alleges that CHC, a provider of commercial helicopter services to the offshore oil and gas industry worldwide, failed to disclose in connection with its IPO that one of its largest clients, Petroleo Brasileiro S.A., had stopped making payments on its contracts with CHC since April 2013. It was not until a July 10, 2014 earnings call that CHC disclosed the truth, stating 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 July 10, 2014, CHC Group Ltd.’s shares declined nearly 12% below their July 9, 2014 closing price, and more than 23% below the IPO price.
On September 21, 2015, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed a consolidated complaint on November 9.
On November 7, 2016, the Court issued an Opinion granting Defendants' motions to dismiss, and closing this case. This decision was appealed by Plaintiffs on December 7.