DENVER--(BUSINESS WIRE)--Shuman Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of Granite Construction Inc. (“Granite Construction” or the “Company”) (NYSE: GVA). Granite Construction is an infrastructure contractor and a construction materials producer in the United States.
The Firm’s investigation relates to allegations raised in a class action lawsuit filed against the Company and certain of its senior officers in the U.S. District Court for the Northern District of California. In this class action, it is alleged that the defendants made false and/or misleading statements and failed to disclose: (1) that the Company assumed certain risks in connection with its heavy civil joint venture project bids between 2012 and 2014; (2) that there was an "untenable" imbalance of risk sharing between the Company and joint venture project owners; (3) as a result, the Company was reasonably likely to incur additional project costs for its joint venture projects; and (4) the Company was reasonably likely to incur additional costs in connection with certain project disputes. On May 20, 2020, the defendants’ motion to dismiss was denied in part and the class action is now proceeding towards trial.
The lawsuit alleges that the above misrepresentations damaged stockholders. On July 29, 2019, the Company disclosed that its second quarter 2019 financial results were negatively impacted by non-cash charges related to four legacy, unconsolidated heavy civil joint venture projects in Texas, California, New York and Pennsylvania collectively worth over $7.5 billion. On this news, the Company’s stock price fell $7.98 per share, or nearly 18%, to close at $36.49. On August 2, 2019, the Company announced its second quarter 2019 financial results, including a $114.2 million revenue reduction due to the charges disclosed on July 29, 2019. On this news, the Company’s stock price fell $2.78 per share, or over 8%, to close at $31.22. Granite Construction’s stock currently trades for less than $18 per share.
If you currently own Granite Construction common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at firstname.lastname@example.org.
Shuman Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.