SAN DIEGO, March 2, 2017 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/chicagobridgeandiron/) today announced that a class action has been commenced by an institutional investor on behalf of purchasers of Chicago Bridge & Iron Company N.V. ("CB&I") (NYSE: CBI) common stock during the period between October 29, 2013 and December 10, 2014 (the "Class Period"). This action was filed in the Southern District of New York and is captioned City of Dearborn Heights Act 345 Police & Fire Ret. Sys. v. Chicago Bridge & Iron Company N.V., et al., No. 17-cv-01580.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/chicagobridgeandiron/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges CB&I and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 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 17, 2014, Prescience Point issued a report asserting that CB&I had improperly accounted for its goodwill during 2013 to cover losses associated with construction delays and cost overruns on the Nuclear Projects. On this news, the price of CB&I stock dropped more than 8% to close at $68.19 per share. Between June 2014 and December 2014, in response to the disclosure of additional information relating to the status of the Nuclear Projects and who might be liable for the associated cost overruns and project delays, the Company's stock price continued to decline to under $40 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of CB&I common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both total amount recovered for investors and number of securities class action recoveries in ISS's SCAS Top 50 Report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/chicagobridgeandiron/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP