NEW YORK, Dec. 1, 2008 (GLOBE NEWSWIRE) -- Roy Jacobs & Associates announces that it has filed a class action lawsuit in the United States District Court, Southern District of New York, against McDermott International Inc. (NYSE:MDR) ("McDermott" or the "Company") and certain of its current or former executives on behalf of purchasers of McDermott securities during the period from February 27, 2008 through November 5, 2008 (the "Class Period").
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may also visit the firm's website at www.jacobsclasslaw.com.
According to the complaint, McDermott concealed from investors the true reasons why 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, the Company's oil and gas division posted a $19.7 million loss during the third quarter of 2008, which included a $90 million charge at the gross-margin level.
Investors finally learned of the severity of the production setback, its causes and the resulting negative impact to the Company's earnings on November 5, 2008 when the Company disclosed its third quarter financials after the market close, and held a public conference call on November 6, 2008 in which pertinent remarks were made by the Company's new CEO. As a result of these totally unexpected disclosures which were contrary to what the Company had been previously maintaining, McDermott's stock price plunged from $15.56 per share at the close on November 5, 2008 to $10.39 per share at the close on November 6, 2008 -- a loss of $5.17 per share, or 33%. The Company's former Chief Executive Officer, who recently retired, sold millions of dollars of his own shares during 2007 and 2008 at prices far in excess of the Company's current share price, and failed to timely disclose any of this material adverse information, although it is alleged that the facts were known within the Company. McDermott shares have continued to decline.
If you bought McDermott common securities during the Class Period, that is, from February 27, 2008 through November 5, 2008 and have losses of $75,000 or more, please contact Roy L. Jacobs. Mr. Jacobs will be glad to personally speak with you. You may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by January 20, 2009.
You may also sign up at our website at www.jacobsclasslaw.com.