NEW ORLEANS, March 3, 2007 (PRIME NEWSWIRE) -- Kahn Gauthier Swick, LLC announces that it has commenced an investigation into Gulf Island Fabrication, Inc. ("Gulf Island" or the "Company") (Nasdaq:GIFI) to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders.
Shares of Gulf Island closed down $9.10 today, or 25%, after the Company restated its results for the first nine months of 2006. On Thursday evening after markets closed, Gulf Island admitted to overestimating revenue from a contract with Chevron Corp., for the construction of a deck on a massive offshore oil platform in the Gulf of Mexico. Gulf Island assumed that contract when it acquired the assets of another company last year.
Gulf Island restated its earnings for the first three quarters of 2006 from $18.6 million to $17.6 million and lowered revenue from $237.8 million to $236.2 million.
In addition to the foregoing, KGS is also investigating sales of over $4 million of company stock, by the officers and/or directors of Gulf Island that occurred primarily in November and December 2006 -- the time when these shares traded at or near their all time trading high -- and during the period that shares appear to have been inflated by defendants' publication of financial statements that are not reliable and that have now been restated.
If you would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or by email at lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit www.kgscounsel.com.