| Company: | Chicago Bridge & Iron Co. |
| Ticker Symbol: | NYSE: CBI |
| Class Period: | March 9, 2005 to February 3, 2006 |
| Date Filed: | Feb-17-06 |
| Lead Plaintiff Deadline: | April-16-06 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Chicago Bridge & Iron Co. NV ("Chicago Bridge"or the "Company") (NYSE:CBI) publicly-traded securities during the period between March 9, 2005 and February 3, 2006, (the "ClassPeriod").
The complaint charges Chicago Bridge and certain of its officers and directors with violations of the Securities Exchange Act of 1934.Chicago Bridge operates as an engineering, procurement, and construction company and offers conceptual design, engineering, procurement, fabrication, field erection, mechanical installation, and commissioning services.
The complaint alleges that, during the Class Period, defendants issued numerous materially false and misleading statements (in pressreleases, on conference calls with investors and in filings with the Securities and Exchange Commission) which caused Chicago Bridge's securities to trade at artificially inflated prices. As alleged in the complaint, these statements were materially false and misleading because they misrepresented and failed to disclose the following adverse facts: (i) that the Company was materially overstating its financial results by failing to properly utilize percentage-of-completion accounting; (ii) that the Company was not following its publicly stated revenue recognition policies; and (iii) as a result of the foregoing, the Company's financial statements were not prepared in accordance with Generally Accepted AccountingPrinciples ("GAAP") and therefore were materially false and misleading.
According to the complaint, on October 26, 2005, Chicago Bridge issued a press release announcing that it would be delaying the release of its third quarter financial results because the results were not "finalized in time to meet the original schedule". On October 31, 2005, Chicago Bridge issued a press release announcing a delay in its release of third quarter financial results that was "precipitated by a memo from a senior member of CB&I's accounting department alleging accounting improprieties, including the determination of claim recognition on two projects and the assessment of costs to complete two projects."
Then, on February 3, 2006, after the close of the market, Chicago Bridge issued a press release announcing the terminations of Defendants Glenn and Jordan and that it would further elaborate on the terminations on a conference call the week of February 13, 2006. Two hours after the announcement of the terminations, an attorney representing Defendants Glenn and Jordan issued a press release representing that they had been terminated in connection with the Company's internal accounting investigation.
In response to these announcements, on February 6, 2006, the price of Chicago Bridge stock dropped from $29.00 per share to $22.33 per share on extremely heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
By submitting this form, you are asking lawyers to contact you. You are under no obligation to accept their services and you are free to choose which lawyer you want to work with. Lawyers are usually paid out of the proceeds of the settlement or verdict rendered.
The complaint charges Chicago Bridge and certain of its officers and directors with violations of the Securities Exchange Act of 1934.Chicago Bridge operates as an engineering, procurement, and construction company and offers conceptual design, engineering, procurement, fabrication, field erection, mechanical installation, and commissioning services.
The complaint alleges that, during the Class Period, defendants issued numerous materially false and misleading statements (in pressreleases, on conference calls with investors and in filings with the Securities and Exchange Commission) which caused Chicago Bridge's securities to trade at artificially inflated prices. As alleged in the complaint, these statements were materially false and misleading because they misrepresented and failed to disclose the following adverse facts: (i) that the Company was materially overstating its financial results by failing to properly utilize percentage-of-completion accounting; (ii) that the Company was not following its publicly stated revenue recognition policies; and (iii) as a result of the foregoing, the Company's financial statements were not prepared in accordance with Generally Accepted AccountingPrinciples ("GAAP") and therefore were materially false and misleading.
According to the complaint, on October 26, 2005, Chicago Bridge issued a press release announcing that it would be delaying the release of its third quarter financial results because the results were not "finalized in time to meet the original schedule". On October 31, 2005, Chicago Bridge issued a press release announcing a delay in its release of third quarter financial results that was "precipitated by a memo from a senior member of CB&I's accounting department alleging accounting improprieties, including the determination of claim recognition on two projects and the assessment of costs to complete two projects."
Then, on February 3, 2006, after the close of the market, Chicago Bridge issued a press release announcing the terminations of Defendants Glenn and Jordan and that it would further elaborate on the terminations on a conference call the week of February 13, 2006. Two hours after the announcement of the terminations, an attorney representing Defendants Glenn and Jordan issued a press release representing that they had been terminated in connection with the Company's internal accounting investigation.
In response to these announcements, on February 6, 2006, the price of Chicago Bridge stock dropped from $29.00 per share to $22.33 per share on extremely heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Securities Complaint
If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible class action lawsuit. Please fill out the form at right and we will have this lawyer review your securities complaint.By submitting this form, you are asking lawyers to contact you. You are under no obligation to accept their services and you are free to choose which lawyer you want to work with. Lawyers are usually paid out of the proceeds of the settlement or verdict rendered.
Last updated November 26 2012
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