NEW YORK, March 22, 2006 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) reminds investors that the deadline to ask the court to appoint you as lead plaintiff for the Class in a class action lawsuit against Chicago Bridge & Iron Company N.V. ("CB&I" or the "Company") is April 16, 2006. On March 8, 2006, Pomerantz filed a class action against the Company and certain of its officers, in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of the Company during the period from March 9, 2005 to February 15, 2006, inclusive (the "Class Period"). The complaint alleges violations of Section 20(a) and Section 10(b) of The Exchange Act and Rule 10b-5.
The complaint alleges that beginning in March 2005 through August 2005, CB&I consistently issued favorable press releases lauding the company's financial strength, consistently reporting an increase in net income and share value for the 2004 fiscal year and the first two quarters of 2005. On May 10, 2005 the Company filed its first quarter report with the SEC on a Form 10-Q. Pursuant to section 302 of Sarbanes Oxley, the Form 10-Q contained signed certifications by the company's Chief Executive Officer and Chief Financial Officers. On August 8, 2005, the Company filed with the SEC its Form 10-Q for the second quarter ended June 30, 2005. In the Form 10-Q, the Company reiterated previously announced financial results and was signed by the chief financial officer.
In truth, statements issued by the defendants during the Class Period were materially false and misleading when made because defendants failed to disclose that: (a) the Company was materially overstating its financial results by failing to properly utilize percentage-of completion accounting; (b) the Company failed to properly recognize revenue on two projects; (c) the Company was not following its publicly stated revenue recognition policies; (d) the Company lacked adequate internal controls to ensure the accuracy of its reported financial results and guidance; (e) the Company's financial statements were not prepared in accordance with GAAP; and (f) that as a result, the Company's guidance lacked any reasonable basis in fact.
If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at (888) 476-6529 (or (888) 4-POMLAW, toll free.) Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca