The original complaint charges Perini and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Perini and its subsidiaries offer general contracting, construction management, and design-build services to private clients and public agencies worldwide.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (a) that the developer of Perini's Las Vegas, Nevada projects, including the CityCenter Project, was experiencing financial problems because it failed to secure financing for the entire project and was dependent upon raising the remainder of the financing from the expected sale of residential units. However, the proceeds from the residential unit sales were based on unrealistic and aggressive prices at a time when the condo market in Las Vegas, Nevada was extremely weak; (b) that the company's Las Vegas projects were being delayed, and could possibly be halted; (c) that the developer was in risk of defaulting on its construction loan; (d) that the
Company's future revenue and profit was dependent upon the Las Vegas projects since the projects consisted of approximately 20% of its backlog; and (e) as a result of the foregoing, the Company's ability to maintain its profit margins was in serious doubt.
Then, on January 17, 2008, the Company issued a press release announcing that Deutsche Bank "delivered a notice of loan default to the developer of the Cosmopolitan Resort and Casino project under construction in Las Vegas, Nevada." In response to this announcement, shares of the Company's common stock fell $10.05 per share, or 27%, to close at $27.65 per share, on heavy trading volume.
On December 10, 2008, U.S. District Judge Nathaniel M. Gorton granted the motion to consolidate two related actions, and approved the plaintiffs’ motion for lead plaintiff and approved selection of lead and liaison counsel. Plaintiffs Iron Workers District Council, Southern Ohio & Vicinity Pension Trust and Operating Engineers Construction Industry and Miscellaneous Pension Fund (collectively, the “Pension Fund Group”) are appointed lead plaintiff and Coughlin Stoia Geller Rudman & Robbins LLP and Shapiro Haber & Urmy LLP are approved to serve as Lead and Liaison Counsel, respectively. On February 9, 2009, the lead plaintiff filed a First Consolidated Amended Complaint. On April 17, 2009, the defendants filed motions to dismiss the First Consolidated Amended Complaint.
On October 7, 2009, Judge Nathaniel M. Gorton signed the Memorandum and Order dismissing the case without prejudice. The plaintiffs were given leave to file a second amended complaint, but on November 23, 2009, the parties filed a Joint Notice of Plaintiffs' Intent not to Replead and Stipulation of Dismissal with Prejudice. On November 30, 2009, Judge Gorton signed the Order dismissing the action with prejudice.