NEW YORK, Aug. 20, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased the securities of McDermott International, Inc. ("McDermott" or the "Company") (NYSE:MDR) between November 6, 2012 through August 5, 2013 ("Class Period"), seeking remedies under the federal securities laws.
The Complaint alleges Defendants made false and misleading statements and/or failed to disclose that: (i) the Company was experiencing weaknesses in its project bidding and execution; (ii) the Company was engaging in poor risk evaluation; (iii) the Company had been experiencing poor project management; (iv) the Company was experiencing material losses in its Middle East, Asia Pacific and Atlantic segments; and (v) based upon the above, 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. The Company disclosed that it experienced a substantial decrease in its 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.
If you wish to serve as lead plaintiff, you must move the Court no later than October 15, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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