On or around 03/30/2001 (Other)
Filing Date: December 09, 1999
According to the Company’s FORM 10-Q for the quarterly period ended June 30, 2002, the Company filed Motions to Dismiss in both the shareholder derivative suit and the class action. The federal district court granted the Company's Motions on both actions. No appeal was filed in the shareholder derivative suit, but the class action case was appealed to the U.S. Fifth Circuit Court of Appeals, which upheld the lower court's dismissal in May 2002.
The original complaint alleges that during the class period defendants knew or recklessly disregarded that BHI's Intek unit, which represented over 20% of BHI's business, had materially overstated its earnings due to violations of Generally Accepted Accounting Principals. This overstatement of Intek's earnings enabled BHI to report improperly inflated earnings on a consolidated basis during the class period. In turn, plaintiff alleges that the price of BHI common stock was artificially inflated during the class period. When BHI announced that it would restate financial results for historical periods because of the accounting violations at Intek, the price of BHI common stock declined precipitously. Plaintiff seeks to recover damages for herself and all persons who purchased the common stock during the class period at prices inflated by defendants' fraudulent scheme.
Company & Securities Information
Defendant: Baker Hughes, Inc.
Industry: Oil Well Services & Equipment
Headquarters: United States
Ticker Symbol: BHI
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
David Abrams, et al. v. Baker Hughes, Inc., et al.