McDermott International, Inc. Sued by Investor
SAN DIEGO and HOUSTON, Aug. 28, 2013
SAN DIEGO and HOUSTON, Aug. 28, 2013 /PRNewswire/ -- Shareholder rights
attorneys at Robbins Arroyo LLP announce that an investor of McDermott
International, Inc. (NYSE: MDR) ("McDermott") has filed a complaint in the
U.S. District Court for the Southern District of Texas. The complaint alleges
that the company and certain of its officers violated the Securities Exchange
Act of 1934 between November 6, 2012 and August 5, 2013 (the "Class Period").
McDermott operates as an engineering, procurement, construction, and
installation company worldwide.
McDermott Accused of Making False and Misleading Statements
According to the complaint, certain McDermott officers made false and
misleading statements and failed to disclose information regarding the
company's true financial condition, operation, and business prospects.
Specifically, the complaint alleges that, throughout the Class Period, the
company and certain of its officers disseminated false and misleading
statements and/or failed to disclose that McDermott was experiencing weakness
in its project bidding and execution, and engaging in poor project management.
Further, according to the complaint, McDermott failed to disclose that the
company had been experiencing poor project management as well as losses in its
Middle East, Asia Pacific, and Atlantic segments. As a result of these false
and misleading statements and omissions, McDermott shares traded at
artificially inflated prices during the Class Period.
McDermott Stock Price Drops on Poor Financial Results
On August 5, 2013, according to the complaint, McDermott announced the
financial results for the second quarter 2013, reporting a net loss of $149.4
million, compared to income of $52.7 million for the same quarter 2012.
McDermott attributed the loss to project-related charges in the company's Asia
Pacific and Middle East segments arising from weakness in project bidding and
execution. On this news, McDermott shares dropped 19%, or $1.80 per share, to
close at $6.93 on August 6, 2013.
If you invested in McDermott and would like to discuss your shareholder
rights, please contact attorney Darnell R. Donahue at (800) 350-6003,
firstname.lastname@example.org, or via the shareholder information form on the
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and 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. For more information, please go
Press release link:
Attorney Advertising. Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free at (800) 350-6003
SOURCE Robbins Arroyo LLP
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