Chicago Bridge & Iron Company N.V. Securities Litigation
On or around 02/04/2019 (Ongoing date of last review)
Filing Date: March 02, 2017
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.
Company & Securities Information
Defendant: Chicago Bridge & Iron Company N.V.
Sector: Capital Goods
Industry: Construction Services
Headquarters: United States
Ticker Symbol: CBI
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
City of Dearborn Heights Act 345 Police & Fire Retirement System, et al. v. Chicago Bridge & Iron Company N.V., et al.