NEW YORK, Nov. 21, 2008 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of McDermott International ("McDermott" or "the Company") (NYSE:MDR) common stock during the period between February 27, 2008 and November 5, 2008 (the "Class Period") for violations of federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased McDermott common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so no later than 60 days from November 19, 2008. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
According to the complaint, McDermott concealed from investors that its three large, ongoing construction contracts for the installation of marine oil and gas pipelines off the coast of Qatar were substantially delayed and that the delays caused the Company to incur major losses on those contracts. As a result, plaintiffs said, the Company's oil and gas division posted a $19.7 million loss during the third quarter of 2008, resulting from $90 million in contract losses related to delays on the three pipeline contracts. Investors finally learned of the severity of the production setback and the resulting negative impact to the Company's earnings on November 5, 2008 when the Company filed its third quarter 2008 Form 10-Q with the SEC. McDermott's stock price plunged on the news, from $15.56 per share at close on November 5, 2008 to $10.39 per share at close on November 6, 2008 -- a loss of $5.17 per share, or 33%.