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Case Status:    DISMISSED    
On or around 03/13/2015 (Court's order of dismissal)

Filing Date: August 15, 2013

According to the law firm press release, McDermott is an engineering, procurement, construction and installation company focused on executing complex offshore oil and gas projects worldwide. McDermott operates in approximately 20 countries across the Atlantic, Middle East and Asia Pacific area. The complaint alleges that the Defendants made false and misleading statements and/or failed to disclose that: (a) the Company was experiencing weaknesses in its project bidding and execution; (b) the Company was engaging in poor risk evaluation; (c) the Company had been experiencing poor project management; (d) the Company was experiencing material losses in its Middle East, Asia Pacific and Atlantic segments; and (e) based upon the above, the Defendants lacked a reasonable basis for their positive statements about the Company during the Class Period.

On August 5, 2013, McDermott announced second quarter financial and operating results for the quarter ending June 30, 2013. In its press release, the Company disclosed that it experienced a substantial decrease in the Company’s year-over-year financial results which badly missed Wall Street consensus estimates. The Company attributed its poor performance to several significant projects in the Middle East and Asia Pacific segment along with underutilization of assets in the Company’s Atlantic segment. The Company additionally disclosed that it was taking immediate action to correct “weaknesses” in its “project bidding and execution” and management was putting in place four initiatives in order to create a “more disciplined culture within the Company” to deliver adequate return on the Company’s investors’ capital.

In reaction to the disappointing news, McDermott’s stock price fell $1.80 per share or 20.6% from $8.73 per share on August 5, 2013 to $6.93 per share on August 6, 2013, on usually heavy trading volume.

A consolidated complaint was filed on February 6, 2014.

On March 13, 2015, the Defendants' Motion to Dismiss was granted with prejudice.

COMPANY INFORMATION:

Sector:
Industry:
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MDR
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.
COURT: S.D. Texas
DOCKET #: 13-CV-02393
JUDGE: Hon. Kenneth M. Hoyt
DATE FILED: 08/15/2013
CLASS PERIOD START: 11/06/2012
CLASS PERIOD END: 08/05/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Watkins, Nichols, Sorrels, Agosto & Friend
    800 Commerce Street, Abraham, Watkins, Nichols, Sorrels, Agosto & Friend, TX 77002
    713-222-7211 713-225-0827 ·
  2. Saxena White PA (Boca Raton)
    2424 N. Federal Highway, Suite 257, Saxena White PA (Boca Raton), FL 33431
    561.394.3399 561.394.3399 ·
No Document Title Filing Date
COURT: S.D. Texas
DOCKET #: 13-CV-02393
JUDGE: Hon. Kenneth M. Hoyt
DATE FILED: 02/06/2014
CLASS PERIOD START: 11/06/2012
CLASS PERIOD END: 08/06/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Edison, McDowell & Hetherington LLP

    ·
  2. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date