Shareholder Investigation of McDermott

McDermott International, Inc. (MDR) Accused of Hiding Higher Project Costs Related to Its Acquisition

According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between January 24, 2018 and October 30, 2018, McDermott International, Inc. (MDR) repeatedly affirmed its 2018 guidance, acknowledging “strong operational performance, cost saving and better than anticipated weather and change orders.” In May 2018, McDermott acquired Chicago Bridge & Iron Company (“CB&I”). Shortly after, McDermott revealed it was disappointed with the increased cost estimates for three of the legacy CB&I projects, but that the company could nevertheless bring them to successful completion. Then, on October 30, 2018, McDermott reported that financial results for the third quarter of 2018 fell far below analysts’ estimates and announced a massive $744 million change in the value of certain projects it had acquired from CB&I, citing regional limitations on labor availability and quality. On this news, McDermott’s stock fell nearly 40% to close at $7.73 per share on October 31, 2018, and has yet to regain its value.

McDermott International, Inc. (MDR) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.

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