NEW YORK, July 8, 2002 (PRIMEZONE) -- The law firm of Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) announces that it has filed a class action lawsuit against Halliburton Company ("Halliburton" or the "Company") (NYSE:HAL) and four of the Company's senior officers on behalf of shareholders who purchased the common stock of Halliburton during the period between July 22, 1999 and May 28, 2002, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, defendants improperly recognized revenues in connection with Halliburton's long-term construction projects in violation of Generally Accepted Accounting Principles ("GAAP"). Beginning at least as early as the fourth quarter of fiscal 1998, the Company amended its accounting policies to report approximately $89 million of revenues to cover disputed cost overruns on long-term construction projects. The Company assumed that its customers would pay the disputed amounts, but never disclosed the change in accounting or the assumption of payment to the market.
As alleged in the Complaint, for fiscal years 1999, 2000, and 2001, the Company reported unbilled receivables of $98 million, $113 million, and $234 Million, respectively. These unbilled receivables were based on the same undisclosed assumption of payment, in violation of GAAP because payment of the receivables was not probable and the amounts could not be estimated with the requisite reliability.
Thereafter, on May 28, 2002, Halliburton disclosed that the Securities and Exchange Commission ("SEC") had begun "a preliminary investigation of the Company's accounting treatment of cost of cost overruns on construction jobs." Over the next two weeks, the stock lost 15% of its value as it fell from a closing price of $19.35 on May 28, 2002, to a closing price of $16.49 on June 11, 2002, a loss of $2.86 per share.
If you purchased the common stock of Halliburton during the Class Period, you have until August 2, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca