NEW YORK, June 14, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of Texas, civil action number 3-02-CV-1247M, on behalf of all persons or entities who purchased Halliburton Co. ("Halliburton" or the "Company") securities (NYSE:HAL) between July 22, 1999 and May 28, 2002, both dates inclusive (the "Class Period"). Halliburton, David J. Lesar, Gary V. Morris, and R. Charles Muchmore, Jr. are named as defendants in the action.
The Complaint alleges that defendants violated section 10(b) of the Securities and Exchange Act of 1934 and SEC Rule 10b-5 by issuing a series of materially false and misleading statements concerning its business and financial condition.
Throughout the Class Period, Halliburton improperly recognized revenues in connection with its long-term construction projects in violation of Generally Accepted Accounting Principles. Beginning in the fourth quarter of 1998 and without disclosing the change to the market, the Company altered its accounting policies to report revenues to cover disputed cost overruns on long-term construction projects, making the tacit assumption that its customers would pay the disputed amounts. The Company made this change during a very difficult year, with lower oil prices adversely impacting its business and reported a net loss of $14.7 million for the year ended December 31, 1998 (down dramatically from net income of $722.4 million the year before). In addition, in the third quarter of 1998, shortly before the accounting change was made, the Company had just completed its acquisition of Dresser Industries, Inc., which had been suffering from an onslaught of hundreds of thousands of asbestos-related lawsuits. But for the change, the Company would have reported a loss in excess of $100 million in 1998.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel 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. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Halliburton securities between July 22, 1999 and May 28, 2002, you may, no later than August 2, 2002 move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca