MURRAY, FRANK & SAILER LLP ANNOUNCES SHAREHOLDER LAWSUIT AGAINST THE SHAW GROUP -- SGR
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NEW YORK—(PrimeZone)—July 28, 2004—Murray, Frank & Sailer LLP announces that it has filed a securities fraud class action complaint against The Shaw Group, Inc. ("Shaw" or the "Company"), Tim Barfield Jr., J.M. Bernhard, Jr., Richard F. Gill and Robert Belk, on behalf of purchasers of Shaw common stock (NYSE: SGR) between October 19, 2000 and June 10, 2004, inclusive (the "Class Period"). A copy of the complaint is available on our website, http://www.murrayfrank.com/CM/NewCases/NewCases.asp for the next two months.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that during the Class Period, the Defendants issued a series of material misrepresentations to the market about the Company's financial outlook and results of operations. More specifically, the Complaint alleges that the Defendants artificially inflated the Company's reported revenues and earnings by improperly establishing and drawing on reserve accounts that were created in connection with a series of large acquisitions, including the acquisition of Stone & Webster Inc. and The IT Group. The Complaint further alleges that Defendants prematurely recognized revenue in violation of Shaw's own purported policies and Generally Accepted Accounting Principles, and that Defendants failed to disclose the extent to which Shaw was vulnerable to changes in power generation market conditions.
After the market closed on June 10, 2004, Shaw issued a news release and announced that on June 1, 2004, the Company had been notified that the SEC was conducting an informal inquiry and, with respect to the investigation, the SEC has not advised the Company as to either the reason for the inquiry or its scope. However, the request for information appears to primarily relate to the purchase method of accounting for acquisitions, as presented in Shaw's Form 10-K for the fiscal year ended August 31, 2003.
On this news, Shaw's shares, which had closed at $12.28 on June 10, 2004, dropped to close at $10.05 on the next day of trading, on heavy volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of The Shaw Group, Inc. between October 19, 2000 and June 10, 2004, inclusive, and sustained damages, you may, no later than August 16, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
MURRAY, FRANK & SAILER
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]