Processing your request


please wait...

Case Page

 

Case Status:    ONGOING    
On or around 07/17/2020 (Date of last review)

Filing Date: July 17, 2020

According to the Complaint, McDermott International, Inc. ("McDermott" or the Company) purports to provide engineering, procurement, construction, and installation and technology solutions to the energy industry. McDermott purportedly designs and builds infrastructure and technology solutions to transport and transform oil and gas into a variety of products.

On September 20, 2019, McDermott announced in a press release its recent receipt of unsolicited approaches to acquire Lummus Technology, McDermott’s industry leading technology business with a valuation exceeding $2.5 billion. McDermott told investors that it was “exploring strategic alternatives to unlock the value of Lummus Technology,” that the “process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott’s capital structure,” and “we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet.” These disclosures received widespread attention and the price for McDermott common stock increased 50% in premarket trading to close on that day at $2.01 per share, up 27.22%.

The Complaint alleges that the disclosures were materially misleading, that there was not any plan for a near-term sale of Lummus Technology to strengthen McDermott’s balance sheet and that the disclosures were made as part of a scheme to artificially inflate the market price of McDermott’s common stock, calm the market and allow the Company to negotiate a prepackaged Chapter 11 bankruptcy restructuring plan.

COMPANY INFORMATION:

Sector: Energy
Industry: Oil & Gas Operations
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 #: 20-CV-02539
JUDGE:
DATE FILED: 07/17/2020
CLASS PERIOD START: 09/20/2019
CLASS PERIOD END: 01/23/2020
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Reynolds Frizzell LLP
  2. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
No Document Title Filing Date
—Reference Complaint Complaint Related Data is not available
—Related District Court Filings Data is not available