NEW YORK, March 9, 2006 (PRIMEZONE) -- The Law Offices of Bruce G. Murphy announce the filing of a class action on behalf of all securities purchasers of Chicago Bridge & Iron Co. N.V. (NYSE:CBI) ("CBI" or the "Company") between March 9, 2005 and February 3, 2006, inclusive (the "Class Period").
CBI is a global engineering, procurement, and construction company. According to the complaint, the Company repeatedly reported strong financial results in filings with the SEC and in publicly disseminated press releases. The Company also reported to have a "record backlog" of construction projects that would generate significant revenues and contribute to the Company's continuing growth. These statements were materially false and misleading, because defendants failed to disclose that the Company's purportedly positive results and guidance were the result of, in material part, fraudulent accounting.
On October 26, 2005 the truth began to emerge, because on that day, the Company announced that it would not be able to timely file its report for the third quarter of 2005 with the SEC. In reaction to this news, the price of CBI stock fell $6.21 per share in a single day. On October 31, 2005, the Company revealed in a press release that the delay in releasing its results for the third quarter of 2005 "was precipitated by a memo from a senior member of CB&I's accounting department alleging accounting improprieties, including the determination of claim recognition on two projects and the assessment of costs to complete two projects." According to the release, the Company's Audit Committee had commenced an independent investigation of the matter.
Despite this announcement, defendant Gerald Glenn maintained a positive outlook for the Company's performance. On January 27, 2006, the Company disclosed in a filing with the SEC that it had entered into a lucrative "Stay Bonus Agreement" with the Company's Vice President and Controller, Tommy Rhodes, valued at over $1.74 million, in an apparent attempt to cover up its previously announced "accounting improprieties" and to silence a potential whistle-blower. On February 3, 2006, as further evidence that CBI's problems were much more serious than defendants had suggested at the time, the Company announced, without explanation, that it had fired defendants Glenn and Robert B. Jordan.
On February 4, 2006, in reaction to this news, the price of CBI stock plummeted again, falling to $22.33 per share, or 23%, from its closing price of $29.00 on February 3, 2006.
If you purchased or otherwise acquired CBI securities on any world exchange between March 9, 2005 and February 3, 2006 and sustained damages, you may, no later than April 18, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Bruce G. Murphy of The Law Offices of Bruce G. Murphy.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca