Robbins Geller Defeats Defendants’ Motion for Reconsideration in Securities Class Action Against Willbros Group, Inc.
In an order dated September 15, 2016, Judge Keith P. Ellison of the U.S. District Court for the Southern District of Texas denied defendants’ motion for reconsideration of the court’s order denying defendants’ motion to dismiss in a securities class action charging Willbros Group, Inc. and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
Willbros Group operates as an infrastructure contractor serving the oil, gas, refinery, petrochemical and power industries worldwide. The case alleges that the defendants made false and/or misleading statements and failed to disclose material adverse facts regarding the company’s business, operations and prospects, which led to its stocks being traded at inflated prices. The company allegedly improperly accounted for a large pipeline project that resulted in misstatements made in the company’s second quarter financial statements, requiring a reversal of $8 million in recognized pretax income and approximately $14-$16 million in estimated pretax losses.
Defendants’ motion for reconsideration sought the dismissal of seven claims made by plaintiffs, stating that for various reasons, the alleged misstatements in question were not actionable under governing law. The court denied defendants’ motion to dismiss for all seven statements.
In re Willbros Group, Inc. Securities Litigation, Case No. 4:14-cv-03084, Memorandum and Order (S.D. Tex. Sept. 15, 2016).