Orion Group Holdings, Inc.
- Company Name
- Orion Group Holdings, Inc.
- Stock Symbol
- Class Period
- March 13, 2018 to March 26, 2019
- Motion Deadline
- June 10, 2019
- Southern District of Texas
The complaint charges Orion and certain of its officers with violations of the Securities Exchange Act of 1934. Orion is a specialty construction company that operates in the United States, Canada and the Caribbean Basin. The Company offers marine transportation facility and marine pipeline construction, dredging of waterways, channels and ports, and turnkey concrete construction services across the light commercial, structural and other associated business areas.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and financial results. Specifically, defendants failed to disclose that the Company lacked effective internal control over financial reporting, including over goodwill impairment testing and allowance for doubtful accounts, which had resulted in the overstatement of goodwill and accounts receivable in certain periods that would require adjustments and materially impact the Company’s financial results. As a result of this information being concealed from investors during the Class Period, Orion securities traded at artificially inflated prices, with its stock price reaching a high of more than $9.50 per share.
On March 18, 2019, Orion announced that it would be unable to file its annual report on Form 10-K with the SEC in a timely manner due to “extended evaluations of goodwill impairment testing and income tax adjustments, among other things.” The Company also announced it “expect[ed] that a significant change in results of operations from the corresponding period for the last fiscal year will be reflected in its financial statements.” On this news, the price of Orion stock fell more than 12%, to close at $3.72 per share on March 19, 2019.
Then, on March 26, 2019, the Company reported a $94.4 million net loss for the fourth quarter of 2018 due to certain non-cash charges, including a $69.5 million goodwill impairment charge. On this news, Orion’s stock price fell nearly 7%, to close at $2.97 per share on March 26, 2019.