SOURCE: Berman DeValerio

November 19, 2008 14:18 ET

Berman DeValerio Announces Shareholder Suit Against McDermott International Inc.

HOUSTON, TX--(Marketwire - November 19, 2008) - An investor has sued McDermott International Inc. ("McDermott" or "Company") (NYSE: MDR) in federal court, accusing the company of violating securities laws by concealing construction delays on a pipeline project, Berman DeValerio announced today.

Berman DeValerio (www.bermanesq.com) filed the class action complaint November 17, 2008 in U.S. District Court for the Southern District of New York on behalf of shareholders who purchased McDermott stock between February 27, 2008 and November 5, 2008. The complaint, filed as 08-cv-9943, 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.

To receive a copy of the complaint, you may contact the court, call Berman DeValerio at (617) 542-8300, or click here to download a copy.

The lawsuit claims that McDermott and two 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 three 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 three 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 wish to be a lead plaintiff in this action, a motion on your behalf must be filed with the court no later than 60 days from today. You may contact the attorneys at Berman DeValerio to discuss your rights and interests in the case, or you may submit information online by clicking here. Please note: You may also retain counsel of your choice and need not take any action at this time to be a class member.

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