SAN FRANCISCO– LAWFUEL – Legal Newswire –The law firm of Girard Gibbs LLP (http://www.girardgibbs.com) is investigating alleged securities laws violations by Michael Baker Corporation (Amex:BKR) (“Michael Baker”) and its executives between March 16, 2007 and February 22, 2008.
According to the investigation, Michael Baker issued a series of material misrepresentations in its filings with the Securities and Exchange Commission and press releases which failed to disclose that: (1) Michael Baker overstated previously reported revenue in violation of Generally Accepted Accounting Principles; (2) Michael Baker was attempting to illicitly prop up its energy segment’s earnings in order maximize its perceived value for a potential sale; and (3) as a result, Michael Baker’s financial results were unreliable.
On February 22, 2008, Michael Baker announced that an internal review at the Company revealed accounting irregularities related to improper recognition of revenue for first three quarters of the 2007 financial year. Michael Baker announced that it would restate its financial results for the quarters ended March 31, 2007, June 30, 2007, and September 30, 2007. The Company believes that the accumulated pre-tax impact of the revenue recognition errors may entirely offset $12.5 million in profits from the Company’s energy segment and it is evaluating whether its 2006 financial results need to be restated as well. Following this announcement, shares of Michael Baker plummeted, falling 23.63% in the single trading day—or $8.53 per share—to close at $27.57, on trading volume of over 555,000 shares or nearly 8 times Michael Baker’s average trading volume.
If you purchased or otherwise acquired Michael Baker securities between March 16, 2007 and February 22, 2008, you may have suffered losses. If you wish to discuss your rights as an investor, please visit our website, http://www.girardgibbs.com/bkr.html, or contact Jonathan K. Levine, Esq. ([email protected]) or Aaron M. Sheanin, Esq. ([email protected]) toll free at (866) 981-4800.