The High Court of the Marshall Islands has denied a motion for a preliminary injunction filed by plaintiff Michael Sammons, a US investor in DryShips, legally embattled shipping company informed on Monday.
The preliminary injunction motion had sought to suspend any further issuances of new common shares by the company at a price per share below the price specified.
“The court issued its ruling denying the plaintiff’s request after hearing arguments by counsel for the plaintiff, DryShips, and Mr. Economou. The court has ordered that defendants answer, move against or otherwise respond to the complaint by August 18, 2017,” DryShips said.
Furthermore, the shipowner and its CEO revealed plans to fight the complaint by the aforementioned deadline set by the court.
The ruling follows an application for a temporary restraining order filed early this month in the Republic of the Marshall Islands against the company and its CEO which had been denied as well.
The application is part of a lawsuit claiming breaches of fiduciary duty, unjust enrichment, and conflict of interest.
In addition, the company has been faced with a class action lawsuit by its shareholders filed in the New York District Court against the company and two of its executive officers. The complaint alleges that the company and two of its executive officers violated the Securities Exchange Act of 1934 by selling of shares to Kalani Investments at deep discounts, and are claiming damages.
However, DryShips said that the complaint is without merit, adding that, together with its management, it plans to “vigorously defend” against the allegations.
Despite the recent legal action over its shares, DryShips launched 1-for-7 reverse stock split of the company’s issued common shares.