HARTFORD, Conn., Feb. 17, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Chicago Bridge & Iron Co. NV ("Chicago Bridge" or the "Company") (NYSE:CBI) between March 9, 2005 and February 3, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statement. Specifically defendants failed to disclose the following adverse facts: (i) that the Company was materially overstating its financial results by failing to properly utilize percentage-of-completion accounting; and (ii) that the Company was not following its publicly stated revenue recognition policies.
On October 26, 2005, Chicago Bridge announced that it would be delaying the release of its third quarter financial results because they were not finalized as scheduled. On October 31, 2005, Chicago Bridge issued a press release announcing that the delay in its release of financial results was "precipitated by a memo from a senior member of CB&I's accounting department alleging accounting improprieties, including the determination of claim recognition on two projects and the assessment of costs to complete two projects."
Then, on February 3, 2006, after the close of the market, Chicago Bridge announced the terminations of Defendants Glenn and Jordan. Two hours after the announcement, an attorney representing Defendants Glenn and Jordan issued a press release representing that they had been terminated in connection with the Company's internal accounting investigation. On the next trading day, the price of Chicago Bridge stock dropped from $29.00 to $22.33 per share.
If you are a member of the class, you may, no later than April 18, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.