SOURCE: Saxena White P.A.
BOCA RATON, FL--(Marketwired - Aug 16, 2013) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Southern District of Texas against McDermott International, Inc. ("McDermott" or the "Company") (NYSE: MDR) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from November 6, 2012 through August 5, 2013 (the "Class Period"). The complaint brings forth claims for violations of the Securities Exchange Act of 1934.
McDermott is an engineering, procurement, construction and installation company focused on executing complex offshore oil and gas projects worldwide. McDermott operates in approximately 20 countries across the Atlantic, Middle East and Asia Pacific area. The complaint alleges that the Defendants made false and misleading statements and/or failed to disclose that: (a) the Company was experiencing weaknesses in its project bidding and execution; (b) the Company was engaging in poor risk evaluation; (c) the Company had been experiencing poor project management; (d) the Company was experiencing material losses in its Middle East, Asia Pacific and Atlantic segments; and (e) based upon the above, the Defendants lacked a reasonable basis for their positive statements about the Company during the Class Period.
On August 5, 2013, McDermott announced second quarter financial and operating results for the quarter ending June 30, 2013. In its press release, the Company disclosed that it experienced a substantial decrease in the Company's year-over-year financial results which badly missed Wall Street consensus estimates. The Company attributed its poor performance to several significant projects in the Middle East and Asia Pacific segment along with underutilization of assets in the Company's Atlantic segment. The Company additionally disclosed that it was taking immediate action to correct "weaknesses" in its "project bidding and execution" and management was putting in place four initiatives in order to create a "more disciplined culture within the Company" to deliver adequate return on the Company's investors' capital.
In reaction to the disappointing news, McDermott's stock price fell $1.80 per share or 20.6% from $8.73 per share on August 5, 2013 to $6.93 per share on August 6, 2013, on usually heavy trading volume. You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com.
If you purchased McDermott stock between November 6, 2012 and August 5, 2013, you may contact Joe White (firstname.lastname@example.org) or Marc Grobler (email@example.com) at Saxena White P.A. to discuss your rights and interests.
If you purchased McDermott common stock during the Class Period of November 6, 2012 through August 5, 2013, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than October 15, 2013. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.