LOS ANGELES, July 21, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Eastern District of Louisiana on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Shaw Group, Inc. ("Shaw" or the "Company") (NYSE:SGR) between October 19, 2000 and June 10, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Shaw and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Shaw's operations and financial performance artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges, among other things, that during the Class Period defendants misrepresented and/or failed to disclose the following: (1) that Shaw's earnings were materially lagging; (2) that the reserve accounts established to adjust the fair market value of contracts acquired from Stone & Webster, Inc. were used by defendants to manipulate the Company's margins and report positive financial results; (3) that as a consequence of this, Shaw improperly recorded revenue and earnings in violation of its purported revenue recognition policy and Generally Accepted Accounting Principles; and (4) that Shaw's steadily declining earnings did not result solely from the downturn in the domestic power generation market, but rather, the decline was also a function of the depletion of the Company's gross margin reserves.
On June 10, 2004 Shaw announced that it had been notified by the SEC that it 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.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 16, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca