NEW YORK, Nov. 10, 2008 (LAWFUEL) — Roy Jacobs & Associates
announces that it is investigating possible securities law violations
by McDermott International Inc. (NYSE:MDR) (“McDermott” or the
“Company”) as a result of the announcement of markedly reduced third
quarter earnings, which included a $90 million charge at the
gross-margin level on three large on-going construction contracts
wherein the Company and certain of its officers appeared to have known
for a significant period of time that these contracts were
substantially delayed and could not be completed without negatively
affecting margins in the Company’s oil and gas construction segment
going forward.
Despite the fact that certain Company officers knew that the delays and
other problems with the contracts would require material write-downs,
the adverse news was not timely disclosed. It was only upon the Company
having appointed a new Chief Executive Officer who launched an
investigation of the contract situation that the facts were finally
revealed in conjunction with the report of the Company’s third quarter
results, and material charges were recorded against earnings.
For further information, please contact Roy L. Jacobs, Esq. toll-free
at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com.
As a result of the disclosure of this material adverse news, McDermott
shares dropped 33%, and have continued to decline. The Company’s former
Chief Executive Officer, who recently retired, sold millions of dollars
of his own shares during 2007 and 2008 at prices far in excess of the
Company’s current share price, and failed to disclose any of this
material adverse information, although it appears to have been known
within the Company.
If you bought McDermott common stock during the (i) period from January
1, 2008 through November 5, 2008, and suffered a loss (whether or not
you have sold your shares), or (ii) held shares on or prior to January
1, 2008 and still intend to hold your shares, and you are interested in
discussing your rights free of charge, please contact Roy L. Jacobs.
Mr. Jacobs will be glad to personally speak with you.
