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Case ID: 4296 | Stocks | 05/25/2005
A class action has been filed against Willbros Group, Inc. (NYSE:WG), certain of its officers and directors by stockholders who purchased the company's common stock between May 06, 2002 and May 16, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated May 18, 2005, the complaint charges Willbros Group, Inc. and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that Defendants issued, or caused to be issued, false and misleading statements during the Class Period to artificially inflate the value of Willbros stock. Willbros is the target of numerous governmental investigations, both here in the United States by the Securities & Exchange Commission and Department of Justice, and abroad, because the Company engaged in a campaign of illegal and illicit bribery of foreign government officials in Bolivia, Nigeria and Ecuador to successfully obtain construction projects. As a result of these illegal actions, the Company has delayed filing its Form 10-K for 2004; announced a restatement of its financial results for 2002, 2003 and the first nine months of 2004; instituted a series of modifications to rectify material weaknesses in its internal controls; provided an estimate of its possible exposure for violating the Foreign Corrupt Practices Act ("FCPA") (which could be as much as $650,000 per violation, not including criminal penalties of more than $2 million per violation); and withdrew its 2005 guidance. The Company estimates an astonishing 35% to 44% reduction in previously reported net income when the restatement is completed for the collective period of 2002, 2003 and the first nine months of 2004. This means that the Company overstated net income during that period by an incredible 53% to 80%. In addition, the Company also disclosed a number of previously unreported related party transactions from 2002, 2003 and 2004 that materially impacted financial results. As a result of the above restatement, the Company stands in default of its debt covenants because of its substantial reduction in net income. Because of its violations of FCPA, the Company could be prohibited from bidding for future U.S. government contracts. The Company disclosed this information on May 16, 2005 after the market had closed. The market responded immediately and the stock lost 31% on usually high volume of 6.9 million shares, trading as low as $10.15 per share on May 17, 2005, down $5.77 from its previous close of $15.92. If you bought Willbros Group, Inc. securities between May 06, 2002 and May 16, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Delphi Corporation (NYSE:DPH), certain of its officers and directors by stockholders who purchased the company's common stock between January 17, 2001 and March 03, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a tentative $1.5 million settlement of a class action filed against automotive parts manufacturer Federal-Mogul Corporation (OTCBB: FDMLQ, formerly NYSE: FMO) and certain of its officers and directors by stockholders who purchased the company's common stock between October 22, 1998, and May 25, 2000. To recover under the settlement, a completed proof of claim postmarked no later than January 9, 2004, must be mailed to the claims administrator. On July 23, 2003, the court granted final approval to the parties' $2 million settlement of several class actions filed against financial services company Towne Services, Inc. (formerly Nasdaq: TWNE) and certain of its officers and directors by stockholders who purchased the company's common stock between June 23 and October 13, 1999. To recover under the settlement, a completed proof of claim postmarked no later than September 15, 2003, must be mailed to the claims administrator. A class action has been filed against Helen of Troy, Ltd. (HELE), certain of its officers and directors by stockholders who purchased the company's common stock between October 12, 2004 and October 10, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against Sea Containers Ltd. (SCR-A), certain of its officers and directors by stockholders who purchased the company's common stock between May 10, 2005 and March 24, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Several class actions have been filed against financial services company American Express Company (NYSE: AXP), American Express Financial Corporation, and American Express Financial Advisors, Inc. and certain of its officers and directors by investors who purchased who purchased mutual funds in the American Express family of mutual funds between March 10, 1999, to February 9, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. |
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