| Company: | The Shaw Group, Inc. |
| Ticker Symbol: | NYSE: SGR |
| Class Period: | October 19, 2000 to June 10, 2004 |
| Date Filed: | Jun-17-04 |
| Lead Plaintiff Deadline: | Aug-16-04 |
| Court: | Eastern District, LA |
| Allegations: |
A class action lawsuit was filed on June 16, 2004 on behalf of purchasers of the securities of The Shaw Group, Inc. ("Shaw" or the "Company") (NYSE: SGR) between October 19, 2000 and June 10, 2004, inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The action, numbered 04-1685, is pending in the United States District Court for the Eastern District of Louisiana against defendants Shaw, Tim Barfield Jr., J.M. Bernhard, Jr., Richard F. Gill and Robert Belk.
Shaw describes itself as a provider of complete piping systems and comprehensive engineering procurement and construction services to the power industry. The complaint alleges that, during the Class Period, defendants' publicly disseminated results of Shaw's operations and financial condition contained artificially inflated earnings and revenues, assets and income. Such results were not prepared or reported in accordance with Generally Accepted Accounting Principles and deceived investors as to the Company's true performance, thereby artificially inflating the price of Shaw securities during the Class Period. Specifically, the complaint alleges that the defendants artificially inflated the Company's reported revenues and earnings by improperly establishing and drawing on reserve accounts established in connection with a series of large acquisitions, including the acquisition of Stone & Webster Inc. in July 2000 and the acquisition of The IT Group in May 2002. The complaint further alleges that defendants prematurely recognized revenue in violation of Shaw's own purported policies and Generally Accepted Accounting Principles, and that defendants failed to disclose the extent to which Shaw was vulnerable to changes in power generation market conditions.
The truth emerged after the market closed on June 10, 2004 when Shaw announced that it had been notified by the SEC that the SEC was conducting an inquiry that appeared to focus on the Company's accounting for acquisitions. On this news, Shaw stock, which had traded at a class period high of $62.37, fell 12.4% from a closing price of $12.28 on June 10, 2004 to a closing price of $10.75 on the next trading day (June 14, 2004) on more than four times normal volume. During the class period, Company insiders sold Shaw shares at prices artificially inflated by defendants' materially false and misleading statements, for proceeds in excess of $80 million. Additionally, during the Class Period, Shaw sold $490 million convertible zero coupon, liquid yield option notes.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Shaw describes itself as a provider of complete piping systems and comprehensive engineering procurement and construction services to the power industry. The complaint alleges that, during the Class Period, defendants' publicly disseminated results of Shaw's operations and financial condition contained artificially inflated earnings and revenues, assets and income. Such results were not prepared or reported in accordance with Generally Accepted Accounting Principles and deceived investors as to the Company's true performance, thereby artificially inflating the price of Shaw securities during the Class Period. Specifically, the complaint alleges that the defendants artificially inflated the Company's reported revenues and earnings by improperly establishing and drawing on reserve accounts established in connection with a series of large acquisitions, including the acquisition of Stone & Webster Inc. in July 2000 and the acquisition of The IT Group in May 2002. The complaint further alleges that defendants prematurely recognized revenue in violation of Shaw's own purported policies and Generally Accepted Accounting Principles, and that defendants failed to disclose the extent to which Shaw was vulnerable to changes in power generation market conditions.
The truth emerged after the market closed on June 10, 2004 when Shaw announced that it had been notified by the SEC that the SEC was conducting an inquiry that appeared to focus on the Company's accounting for acquisitions. On this news, Shaw stock, which had traded at a class period high of $62.37, fell 12.4% from a closing price of $12.28 on June 10, 2004 to a closing price of $10.75 on the next trading day (June 14, 2004) on more than four times normal volume. During the class period, Company insiders sold Shaw shares at prices artificially inflated by defendants' materially false and misleading statements, for proceeds in excess of $80 million. Additionally, during the Class Period, Shaw sold $490 million convertible zero coupon, liquid yield option notes.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
