Cases & Investigations
McDermott International, Inc. Securities Litigation

Public Employees’ Retirement System of Mississippi v. McDermott International, Inc.

 
Class: All persons and entities that held McDermott International, Inc. common stock as of April 4, 2018, and had the right to vote on the Chicago Bridge & Iron Company N.V. merger pursuant to the Proxy Statement dated March 29, 2018.

Wolf Popper LLP is Lead Counsel to Lead Plaintiff the Public Employees’ Retirement System of Mississippi in a class action lawsuit against McDermott International, Inc. (“McDermott”), Chicago Bridge & Iron Company N.V. (“CB&I”), and certain of their officers and senior executives on behalf of all persons and entities that held McDermott common stock as of April 4, 2018, and had the right to vote on the transaction through which McDermott acquired CB&I (the “Merger”) pursuant to the Proxy Statement dated March 29, 2018.
 
The Amended Complaint alleges, among other things, that the defendants hid well over $1 billion in undisclosed costs related directly to four large construction projects (dubbed the “Focus Projects”) acquired from CB&I as part of the Merger, and that the March 2018 Proxy Statement for the Merger contained materially false and misleading statements in violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and SEC Rule 14d-9.
 
On October 30, 2018, after the Merger closed, McDermott announced that “for the third quarter of 2018, [it] recorded $744 million of changes in estimates” for the Focus Projects.  The disclosure caused McDermott’s stock price to drop 40% from the day before and 60% from its Merger-date price of $20.70 per share on May 10, 2018.
 
The claims asserted in this Action are different than the claims asserted in Edwards v. McDermott International, Inc., Case No. 4:18-cv-04330 (S.D. Tex.).  Edwards asserts claims on behalf of purchasers of McDermott common stock during the period January 24, 2018 through October 30, 2018, pursuant to Section 10(b) of the Exchange Act, whereas this litigation asserts claims on behalf of holders of McDermott common stock as of April 4, 2018, who had the right to vote on the CB&I Merger, pursuant to Section 14(a) of the Exchange Act.

Phone: Robert C. Finkel - (212) 451-9620
Phone: Chet B. Waldman - (212) 451-9624
Phone: Matthew Insley-Pruitt - (212) 451-9621
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