LITTLE ROCK, Ark., July 21, 2004 (PRIMEZONE) -- Emerson Poynter LLP announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of Louisiana on behalf of all persons who purchased or otherwise acquired the publicly traded securities of The Shaw Group, Inc. (NYSE:SGR) ("Shaw" or the "Company") between October 19, 2000 and June 10, 2004, inclusive (the "Class Period"). Present and former employees who purchased stock through Shaw's Retirement Plans are also included. A copy of the Complaint can be obtained from the Court or by contacting Emerson Poynter LLP.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5. The complaint alleges that Defendants publicly disseminated results of Shaw's operations and financial conditions were a misrepresentation because they contained artificially inflated earnings, assets and income. These results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and deceived investors as to the company's true financial performance. According to the complaint, Defendants improperly established and drew upon reserve accounts set up from a series of acquisitions, including the acquisitions of Stone & Webster and the IT Group in May 2002. Moreover, the complaint alleges that Defendants prematurely recognized revenues in violation of their own revenue recognition policy as well as GAAP.
On June 10, 2004 Shaw announced that it had been notified by the SEC that the SEC was conducting an inquiry that appeared to focus on the Company's accounting for acquisitions. On this news, shares of Shaw fell 12.4% to close at $10.75 per share.
Emerson Poynter LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation.
If you purchased or acquired The Shaw Group, Inc. publicly traded securities between October 19, 2000 and June 10, 2004, inclusive, and sustained damages, you may move the Court to serve as lead plaintiff of the class no later than August 16, 2004. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action by calling Tanya Autry or Michelle Raggio in the Firm's Shareholder Relations Department at 1+ (800) 663-9817 or by email to shareholder@emersonfirm.com. To discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel John G. Emerson or Scott E. Poynter of Emerson Poynter LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.