A securities class action lawsuit was recently filed against Willbros Group, Inc.
Willbros Group is a Houston-based international engineering and contracting firm that works in infrastructure and energy services. Originally founded as the William Brothers Company in 1908, the firm's stock trades on the New York Stock Exchange.
On Oct. 31, 2014, Ryan & Maniskas, LLP announced it had filed a securities class action lawsuit to represent investors who acquired company securities between Aug. 4, 2013 and Oct. 21, 2014. This time frame represents the class period. The law firm brought the legal motion forth in the United States District Court for the Southern District of Texas.
Securities class action lawsuit allegations
The lawsuit involved allegations Willbros Group made statements that were materially false and or misleading, and or failed to reveal material adverse facts related to the Houston-based international engineering and contracting firm's business, prospects and operations. The claims involved restatements of the company's financial results.
A separate legal action brought forth by The Rosen Law Firm alleged Willbros Group issued materially false financial statements for the second quarter, ending June 30, 2014. On Oct. 22, 2014, the Houston-based international engineering and contracting firm announced both that market participants could no longer rely on these statements, and that the figures would be restated.
According to the securities class action lawsuit brought forth by The Rosen Law Firm, the company announced that an error had been made when estimating a substantial pipeline contribution project, and that rectifying this mistake would result in Willbros Group recognizing a pre-tax loss of between roughly $14 and $16 million – and a reversal of around $8 million in recognized pre-tax income – once the project was completed.
In addition to disclosing this information, the Houston-based international engineering and contracting firm announced it was assessing how adequate its internal controls were, Ryan & Maniskas alleged in its securities class action lawsuit.
On Oct. 22, 2014, company stock plunged more than 35 percent, which damaged investor holdings.
Ryan & Maniskas informed eligible investors that if they want to serve as lead plaintiff, they have until Dec. 29, 2014 to move the court in an effort to serve in that role. The Rosen Law Firm specified the exact same date for those who want to be a lead plaintiff in the securities class action lawsuit.