Pomerantz LLP

Pomerantz LLP Appointed Lead Counsel in McDermott International Securities Litigation

On June 5, 2019, Pomerantz LLP was appointed Lead Counsel in a securities class action lawsuit filed against McDermott International.

A Texas federal judge ruled Wednesday that Pomerantz and Wolf Popper will each serve as lead counsel for separate sets of securities claims against McDermott International Inc. related to its acquisition of Chicago Bridge and Iron NV.

U.S. District Judge Alfred H. Bennett’s order consolidated a pair of investor suits filed in the wake of McDermott’s October announcement that it needed to revise the estimated value of projects acquired from CB&I months earlier by $744 million, causing the engineering and construction company’s stock price to drop 40% from the day before and 60% from its May 10 merger-date price of $20.70 per share.

Filed on Nov. 15, the first suit alleged that from Jan. 24, 2018, to the October announcement, McDermott violated Section 10(b) of the Securities Exchange Act of 1934 by misleading investors about material problems with the integration of CB&I’s business and the likelihood that its projects would incur higher-than-expected costs.

The Public Employees Retirement System of Mississippi asserted similar allegations in January, but unlike its predecessor, the pension fund’s proposed class action alleged violations of Section 14(a) of the Exchange Act against the company for filing a “materially false and misleading” proxy statement filed ahead of the merger.

The March proxy statement failed to alert investors that certain CB&I projects would incur substantially higher costs than were being publicly represented, meaning the value of these projects would be materially affected, the pension fund said. It seeks to certify a class of “persons and entities that held McDermott common stock as of April 4, 2018, and had the right to vote on the Chicago Bridge & Iron Company NV merger.”

Reviewing both cases, Judge Bennett ordered that they be consolidated under the first-filed suit and that any subsequent and “substantially similar securities class actions” be folded in as well.

The judge also granted unopposed motions appointing the Nova Scotia Health Employees’ Pension Plan and the Mississippi pension fund as lead plaintiffs in the case, with the former handling Section 10(b) claims and the latter handling Section (14a) claims.

According to the Mississippi fund, Judge Bennett had outlined this consolidation plan at a February hearing on competing lead plaintiff motions in the first-filed case.

A hearing on competing lead plaintiff motions in the first-filed case was planned for Wednesday, but the Nova Scotia pension fund said Monday that its competitors had since dropped out, leaving only it and its counsel of choice, Pomerantz LLP, to lead the Section 10(b) claims, with Houston-based Briscoe Law Firm PLLC serving as liaison counsel.

The Mississippi pension fund’s counsel choice, Wolf Popper LLP, will handle the Section 14(a) claims.

Counsel for McDermott, which had sought consolidation of the cases in February, and the two lead counsel teams did not immediately respond to requests for comment.

The Nova Scotia pension fund is represented by Matthew L. Tuccillo, Jeremy A. Lieberman, J. Alexander Hood II and Patrick V. Dahlstrom of Pomerantz LLP and Willie C. Briscoe of The Briscoe Law Firm PLLC.

The Mississippi pension fund is represented by Jeffrey W. Chambers, Chet B. Waldman, Robert C. Finkel and Matthew Insley-Pruitt of Wolf Popper LLP.

McDermott is represented by David D. Sterling and Amy Pharr Hefley of Baker Botts LLP.

The case is Edwards v. McDermott International Inc. et al., case number 4:18-cv-04330, in the U.S. District Court for the Southern District of Texas.

Read more at: https://www.law360.com/mergersacquisitions/articles/1166531?utm_source=LexisNexis&utm_medium=LegalNewsRoom&utm_campaign=section?copied=1

Pomerantz LLP Appointed Lead Counsel in CenturyLink, Inc. Securities Class Action

On June 10, 2019, Pomerantz LLP was appointed Lead Counsel in a securities class action law suit filed against CenturyLink, Inc..

Pomerantz LLP announces that a class action lawsuit has been filed against CenturyLink, Inc. (“CenturyLink” or the “Company”) (NYSE: CTL) and certain of its officers and directors.   The class action, filed in United States District Court, Southern District of New York, and indexed under 19-cv-01802, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired the publicly traded securities of CenturyLink between May 10, 2018 and March 4, 2019, both dates inclusive (the “Class Period”).  Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

If you are a shareholder who purchased CenturyLink securities during the class period, you have until May 6, 2019 to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

CenturyLink purports to provide various communications services to residential, business, wholesale, and governmental customers primarily in the United States.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:  (i) CenturyLink had undisclosed material weaknesses in its internal controls over revenue recording processes and the procedures for measuring fair value of assets and liabilities assumed in connection with its Level 3 Communications, Inc. acquisition; (ii) consequently, CenturyLink would delay the filing of its Form 10-K for the fiscal year ended December 31, 2018 despite initially reporting those financial results in a press release dated February 13, 2019; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On March 4, 2019, the Company announced it would not be able to timely file its annual report for the period ended December 31, 2018 because it had “identified material weaknesses in internal controls over the Company’s revenue recording processes and the procedures for measuring fair value of assets and liabilities assumed in connection with the Level 3 Communications, Inc.”

On this news, CenturyLink’s stock price fell $0.82 per share, or over 6%, to close at $12.15 per share on March 4, 2019.

Pomerantz LLP Appointed Co-Lead Counsel in Philip Morris International Inc. Securities Litigation

On February 25, 2019, Pomerantz LLP was appointed Co-Lead Counsel in a class action lawsuit filed against Philip Morris International Inc.

The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Philip Morris common stock between February 8, 2018, and April 18, 2018 (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “1934 Act”).