LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP, representing investors of Willbros Group, Inc. (“Willbros” or the “Company”) (NYSE:WG), has filed a class action lawsuit in the United States District Court for the Southern District of Texas with an expanded Class Period, including purchasers of Willbros securities between May 5, 2014 and October 21, 2014, inclusive (the “Class Period”).
Willbros operates as an energy infrastructure contractor serving the oil, gas, refinery, petrochemical and power industries worldwide. The Complaint alleges that throughout the Class Period defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, defendants misrepresented or failed to disclose that: (1) the Company was experiencing deterioration of a significant pipeline construction project in the Company’s Northeast regional business within the Oil & Gas segment; (2) as a result, the Company overstated its income; (3) the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal and financial controls; and (5), as a result of the foregoing, defendants’ statements were materially false and misleading at all relevant times.
On October 21, 2014, after the market closed, Willbros revealed that the Company expected to restate its second quarter fiscal 2014 results, and that such results should no longer be relied upon. According to the Company, Willbros had identified approximately $22-$24 million in deterioration of a significant pipeline construction project in the Company’s Northeast regional business within the Oil & Gas segment. The Company stated that this deterioration consisted of the reversal of approximately $8 million in pre-tax income previously recognized, and the recognition of approximately $14-$16 million in estimated pre-tax losses at project completion. The Company further stated that the majority of these estimated charges should have been recognized in the second quarter of 2014. As a result of this news, Willbros shares declined nearly 36%, or $2.75 per share, to close on October 22, 2014, at $4.90 per share, on unusually heavy volume.
If you are a member of the Class described above, you may move the Court no later than December 29, 2014, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, or Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, Toll Free at (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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