According to the law firm press release, 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 14, 2017, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated and amended Complaint on August 14. On October 5, Defendants filed a Motion to Dismiss the consolidated and amended Complaint. On May 24, 2018, the Court issued an Order denying Defendants' Motion to Dismiss.
On February 4, 2019, Plaintiffs moved for class certification. On March 23, 2020, the Court issued an Order granting the motion for class certification.