LOS ANGELES, July 22, 2004 (PRIMEZONE) -- A class action lawsuit was filed in the United States District Court for the Eastern District of Louisiana on behalf of purchasers (the "Class") of The Shaw Group, Inc.'s securities ("Shaw" or the "Company") between October 19, 2000 and June 10, 2004, inclusive (the "Class Period"). Also included are all those who acquired Shaw's securities through its acquisitions of Badger Technologies, The IT Group, Stone & Webster, or Energy Delivery Services and all those who purchased shares in the secondary offering on October 23, 2003. Shaw is traded on the New York Stock Exchange under the ticker symbol SGR.
Defendants include Shaw, Tim Barfield, Jr., J.M. Bernhard, Jr., Richard F. Gill, and Robert Belk.
The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5).
The Complaint alleges that during the Class Period, defendants issued materially false statements concerning Shaw's financial condition. Specifically, defendants inflated Shaw's reported revenues and earnings by improperly establishing and drawing on reserve accounts established in connection with a series of large acquisitions, including the acquisitions of Stone & Webster and The IT Group. Additionally, defendants prematurely recognized revenue in violation of Shaw's own purported policies and Generally Accepted Accounting Principles, and failed to disclose the extent to which Shaw was vulnerable to changes in power generation market conditions.
On June 10, 2004, Shaw announced that the SEC was conducting an inquiry focused on Shaw's accounting for acquisitions. On this news, Shaw stock, which had traded as high as $62.37, fell 12.4% to a closing price of $10.75 on June 14, 2004. During the class period, Company insiders sold shares of Shaw for proceeds in excess of $80 million. Additionally, during the Class Period, Shaw sold $490 million convertible zero coupon, liquid yield option notes.
Plaintiff seeks to recover damages on behalf of the Class and is represented by the Braun Law Group, whose attorneys have significant experience and expertise in prosecuting class actions and have played lead roles in major cases resulting in the recovery of millions of dollars to investors.
If you are a member of the Class described above, you may, no later than August 16, 2004, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action, or have any questions concerning this notice, or your rights with respect to this action, please contact the following: