The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Babcock & Wilcox Enterprises, Inc. (NYSE: BW) who purchased shares between July 1, 2015 and February 28, 2017. The action, which was filed in the United States District Court for the Western District of North Carolina, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that (1) although the Company disclosed issues with a single project in its Renewable business segment, it failed to disclose that similar problems were significantly impacting other projects in the same segment; and (2) the Company assured investors that the problems were “a single project issue.”
On February 28, 2017, Babcock & Wilcox announces its fourth quarter and full year 2016 financial results, announcing it lost $71.6 million or $1.47 per share in the fourth quarter. The Company also announced it took charges in the fourth quarter of 2016 resulting from its Renewable business, which reduced margins, and increased its contingencies for several of its Renewable projects. On this news, shares of Babcock & Wilcox fell approximately 37% to close at $10.33 per share on March 1, 2017.
Shareholders have until May 2, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.