BW Investor Alert: Babcock & Wilcox Enterprises Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Defendants Allegedly Concealed Contract Risks: Levi & Korsinsky

The Red Flags: What Insiders Allegedly Knew Before Shareholders Did

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP announces that a securities class action has been filed against Babcock & Wilcox Enterprises, Inc. (NYSE: BW).

YOU MAY BE AFFECTED IF YOU:

• Purchased BW stock between November 5, 2025 and March 11, 2026
• Lost money on your Babcock & Wilcox investment

Submit your information to recover losses or contact Joseph E. Levi, Esq. at [e-mail] or [phone].

BW shares dropped $1.71 per share, or 11.59%, after a short seller exposed what the securities action alleges were undisclosed related-party ties embedded in a $2.4 billion contract that the Company had repeatedly promoted to investors. The lead plaintiff deadline is June 15, 2026.

What They Allegedly Knew

The lawsuit contends that when the Company announced its Power Generation agreement in November 2025 and again upon full notice to proceed in March 2026, management was aware that its largest shareholder, BRC, maintained an undisclosed relationship with the contract counterparty, Base Electron. Specifically, the action claims that BRC's Co-CEO and Chairman Bryant Riley served as a director of Base Electron, and that Base Electron's registered address matched BRC's headquarters rather than Applied Digital's. Base Electron's articles of incorporation were not even filed until December 23, 2025, seven weeks after the initial agreement was announced to investors.

The Red Flags That Emerged

The complaint chronicles warning signs that, as alleged, should have prompted disclosure:

• Applied Digital's existing data center campuses had already secured power through conventional grid agreements, raising questions about whether the contract served a genuine commercial purpose
• Applied Digital could unilaterally terminate its guarantee of Base Electron's obligations for as little as $50 million on a purportedly $2.4 billion deal
• BRC sold its entire directly-held position in BW common stock for approximately $10.4 million at $9 per share, a 140% premium to the pre-announcement price, shortly after the contract inflated the stock
• Of the $2.4 billion headline figure, only approximately $434 million was a fixed fee, with the remainder contingent on variable charges the Company declined to detail for five additional weeks

Inside Knowledge vs. Public Statements

While management promoted a "$10 billion global pipeline" and described the project's impact as "profound," the securities action alleges that internally, the circumstances surrounding the transaction painted a different picture. As pleaded, the counterparty was created weeks after the preliminary agreement, shared office space with BW's largest shareholder, and was directed in part by that shareholder's Co-CEO. The filing states these facts were available to management yet withheld from the investing public.

"The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public," stated Joseph E. Levi, Esq.

Act now to protect your rights or call [phone].

About Levi & Korsinsky, LLP

Levi & Korsinsky represents investors in securities class actions nationwide, with a track record of recovering hundreds of millions for shareholders harmed by alleged corporate concealment. Ranked among ISS Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by June 15, 2026.

Frequently Asked Questions About the BW Lawsuit

Q: When did Babcock & Wilcox allegedly mislead investors? A: The class period runs from November 5, 2025 to March 11, 2026. The alleged fraud was revealed through corrective disclosures on March 12, 2026, causing an 11.59% stock decline.

Q: What specific misstatements does the BW lawsuit allege? A: The complaint alleges Babcock & Wilcox made materially false or misleading statements regarding the legitimacy, value, and independence of a $2.4 billion power generation contract, while concealing related-party ties between its largest shareholder and the contract counterparty. When the true circumstances were revealed, the stock price declined sharply.

Q: What do BW investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [e-mail] or [phone]. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my BW shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.