NEW ORLEANS--(BUSINESS WIRE)--
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Babcock & Wilcox Enterprises, Inc. (“Babcock”) (BW).
On June 28, 2016, Babcock disclosed an “isolated” problem with “a single project” in its Renewable segment, downplaying the extent and potential ramifications of the problem. On February 28, 2017, Babcock announced disappointing Q4 and year-ended 2016 results, including charges and increased contingencies relating to Renewable projects, yet it continued to downplay the extent of delays and cost overruns. Following this news, Babcock’s stock fell 37%, erasing approximately $300 million of market capitalization in one day. Then, on August 9, 2017, Babcock again revealed negative results for Q2 ended June 30, 2017 due to additional cost overruns and delays on multiple Renewable projects including $115 million in charges and also disclosed a material weakness in the internal controls over financial reporting at one Renewable business unit. The Company has been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws. Recently, the court in that case denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether Babcock’s officers and/or directors breached their fiduciary duties to Babcock’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Babcock shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-bw/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
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