NEW YORK, Nov. 10, 2008 (GLOBE NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities law violations by McDermott International Inc. (NYSE:MDR) ("McDermott" or the "Company") as a result of the announcement of markedly reduced third quarter earnings, which included a $90 million charge at the gross-margin level on three large on-going construction contracts wherein the Company and certain of its officers appeared to have known for a significant period of time that these contracts were substantially delayed and could not be completed without negatively affecting margins in the Company's oil and gas construction segment going forward.
Despite the fact that certain Company officers knew that the delays and other problems with the contracts would require material write-downs, the adverse news was not timely disclosed. It was only upon the Company having appointed a new Chief Executive Officer who launched an investigation of the contract situation that the facts were finally revealed in conjunction with the report of the Company's third quarter results, and material charges were recorded against earnings.
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com.
As a result of the disclosure of this material adverse news, McDermott shares dropped 33%, and have continued to decline. The Company's former Chief Executive Officer, who recently retired, sold millions of dollars of his own shares during 2007 and 2008 at prices far in excess of the Company's current share price, and failed to disclose any of this material adverse information, although it appears to have been known within the Company.
If you bought McDermott common stock during the (i) period from January 1, 2008 through November 5, 2008, and suffered a loss (whether or not you have sold your shares), or (ii) held shares on or prior to January 1, 2008 and still intend to hold your shares, and you are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will be glad to personally speak with you.