HARTFORD, Conn., June 28, 2004 – LAWFUEL – The law firm of Schatz & Nobel,
P.C., which has significant experience representing investors in prosecuting
claims of securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the Eastern
District of Louisiana on behalf of all persons who purchased the publicly
traded securities of The Shaw Group, Inc. (NYSE: SGR) (“Shaw”) between October
19, 2000 and June 10, 2004, inclusive (the “Class Period”). Also included are
all those who acquired Shaw through its acquisitions of Badger Technologies,
The IT Group, Stone & Webster, or Energy Delivery Services and all those who
purchased shares in the secondary offering on October 23, 2003.
The Complaint alleges that Shaw, a provider of complete piping systems and
comprehensive engineering procurement and construction services, and certain
of its officers and directors issued materially false statements concerning
Shaw’s financial condition. Specifically, defendants inflated Shaw’s reported
revenues and earnings by improperly establishing and drawing on reserve
accounts established in connection with a series of large acquisitions,
including the acquisitions of Stone & Webster and The IT Group. Additionally,
defendants prematurely recognized revenue in violation of Shaw’s own purported
policies and Generally Accepted Accounting Principles, and failed to disclose
the extent to which Shaw was vulnerable to changes in power generation market
conditions.
On June 10, 2004, Shaw announced that the SEC was conducting an inquiry
focused on Shaw’s accounting for acquisitions. On this news, Shaw stock, which
had traded as high as $62.37, fell 12.4% to a closing price of $10.75 on June
14, 2004. During the class period, Company insiders sold shares of Shaw for
proceeds in excess of $80 million. Additionally, during the Class Period, Shaw
sold $490 million convertible zero coupon, liquid yield option notes.
If you are a member of the class, you may, no later than August 16, 2004
request that the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member that acts on behalf of other class members in
directing the litigation. Although your ability to share in any recovery is
not affected by the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could affect the
overall recovery for class members, including decisions concerning settlement.
The securities laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
plaintiff(s).
For more information about the case, its claims, and your rights, please
contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at
sn06106@aol.com. To view a copy of the lawsuit initiating the class action,
or for more information about class action cases and Schatz & Nobel, please
visit our website: http://www.snlaw.net.