Chicago Bridge & Iron Company N.V.
Period: Oct 29, 2013 to Dec 10, 2014
Lead Plaintiff Deadline: May 1, 2017
Summary of Case:
A securities class action has been filed against Chicago Bridge & Iron Company N.V. (CBI) on on behalf of all persons or entities who purchased the common stock of CB&I between October 29, 2013 through December 10, 2014. This case has been filed in the USDC - NY Southern.
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.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.