Robbins Arroyo LLP: McDermott International, Inc. (MDR) Misled Shareholders According to Class Action
SAN DIEGO & HOUSTON--(BUSINESS WIRE)--Nov 27, 2018--Shareholder rights law firm Robbins Arroyo LLP informs shareholders that purchasers of McDermott International, Inc. (NYSE: MDR) filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between January 24, 2018 and October 30, 2018. McDermott provides engineering, procurement, construction and installation, front-end engineering and design, and module fabrication services for upstream field developments.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/mcdermott-international-inc-nov-2018/
McDermott Accused of Hiding Higher Project Costs Related to Its Acquisition
According to the complaint, McDermott repeatedly affirmed its 2018 guidance, acknowledging “strong operational performance, cost saving and better than anticipated weather and change orders.” In May 2018, McDermott acquired Chicago Bridge & Iron Company (“CB&I”). Shortly after, McDermott revealed it was disappointed with the increased cost estimates for three of the legacy CB&I projects, but that the company could nevertheless bring them to successful completion. Then, on October 30, 2018, McDermott reported that financial results for the third quarter of 2018 fell far below analysts’ estimates and announced a massive $744 million change in the value of certain projects it had acquired from CB&I, citing regional limitations on labor availability and quality. On this news, McDermott’s stock fell nearly 40% to close at $7.73 per share on October 31, 2018, and has yet to regain its value.
McDermott Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181127005895/en/
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PUB: 11/27/2018 06:26 PM/DISC: 11/27/2018 06:26 PM