WASHINGTON, D.C. — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Chicago Bridge & Iron Company N.V. (“CB&I” or the “Company”). The action is filed in United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired Dollar General’s common stock between October 29, 2013 and December 10, 2014 (“Class Period”).
CB&I was founded in 1889 in Chicago, Illinois. Prior to and around the beginning of the 20th century, CB&I’s growth was propelled by the western expansion of the railroad system and the discovery of oil in the United States. The complaint charges CB&I and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CB&I provides a range of services to customers in the energy infrastructure market throughout the world. Between 2000 and 2012, CB&I completed a series of acquisitions that expanded the Company’s capabilities and services. One acquisition – that of The Shaw Group, Inc. (“Shaw”) – was announced in July 2012 and completed in February 2013. Through the acquisition of Shaw, the Company acquired contracts to complete construction of two new nuclear power plants in Waynesboro, Georgia and Jenkinsville, South Carolina (the “Nuclear Projects”).
The complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business, prospects and financial results. Specifically, the complaint alleges that defendants failed to disclose that CB&I was responsible for hundreds of millions of dollars in liability and had improperly accounted for its goodwill during 2013 to cover losses associated with construction delays and cost overruns on the Nuclear Projects.
The complaint further alleges that CB&I failed to establish and disclose an appropriate reserve for this liability in its financial statements and CB&I lacked effective internal controls over financial reporting. As a result of these false statements and/or omissions, CB&I stock traded at artificially inflated prices of more than $87 per share during the Class Period. On June 17, 2014, Prescience Point issued a report asserting that CB&I had improperly accounted for its goodwill during 2013 to cover losses associated with construction delays and cost overruns on the Nuclear Projects. On this news, the price of CB&I stock dropped more than 8% to close at $68.19 per share.
Between June 2014 and December 2014, in response to the disclosure of additional information relating to the status of the Nuclear Projects and who might be liable for the associated cost overruns and project delays, the Company’s stock price continued to decline to under $40 per share.
U.S. Market Advisors Law Group PLLC is a law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel
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