| Company: | McDermott International Inc. |
| Ticker Symbol: | MDR |
| Class Period: | Feb-27-08 to Nov-5-08 |
| Date Filed: | Nov-17-08 |
| Lead Plaintiff Deadline: | Jan-16-09 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint seeks damages for violations of securities laws under the Securities and Exchange Act of 1934. Based in Houston, McDermott is an international engineering and construction services company. Its clients include the U.S. government and companies in the oil and power industries.
The lawsuit claims that McDermott and 2 individual defendants, including former Chief Executive Officer Bruce W. Wilkinson, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
According to the complaint, McDermott concealed from investors that its 3 large, ongoing construction contracts for the installation of marine oil and gas pipelines off the coast of Qatar were substantially delayed and that the delays caused the Company to incur major losses on those contracts. As a result, plaintiffs said, the Company's oil and gas division posted a $19.7 million loss during the third quarter of 2008, resulting from $90 million in contract losses related to delays on the 3 pipeline contracts. Investors finally learned of the severity of the production setback and the resulting negative impact to the Company's earnings on November 5, 2008 when the Company filed its third quarter 2008 Form 10-Q with the SEC. McDermott's stock price plunged on the news, from $15.56 per share at close on November 5, 2008 to $10.39 per share at close on November 6, 2008 -- a loss of $5.17 per share, or 33%.
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.
