SAN DIEGO, April 10, 2018 /PRNewswire/ -- Johnson Fistel, LLP is investigating potential violations of the federal and state securities laws by Babcock & Wilcox Enterprises, Inc. (NYSE: BW) ("Babcock & Wilcox") and certain of its officers. Babcock & Wilcox provides fossil and renewable power generation and environmental equipment for the power and industrial markets worldwide.
Last year, a Securities Class Action Complaint was filed on behalf of those who purchased securities of Babcock & Wilcox between June 17, 2015 and August 9, 2017. The complaint alleges that defendants made misrepresentations and failed to disclose that: (1) due to rapid growth in the Renewable segment and cost-cutting strategies, the Company lacked sufficient expertise or engineering and other resources to perform on time and within budget the Renewable contracts in its backlog, thereby rendering the backlog an improbable and unrealistic source of profitability; and (2) there were ongoing, undisclosed material problems within the Renewable segment that were exacerbated by the undisclosed diversion of limited resources. On February 9, 2018, Judge Max O. Cogburn, Jr. issued an order denying the motion to dismiss.
Although the Company has been experiencing major struggles, Babcock & Wilcox's former chief executive officer saw a 14% increase in compensation in the Company's 2017 fiscal year due to a large bonus.
Jim Ferland's full compensation for the fiscal year totaled $6.5 million, up from $5.7 million in the Company's 2016 fiscal year. Ferland received a bonus of $1.9 million in bonus compensation for the 2016 fiscal year.
Babcock & Wilcox announced the departure of Ferland as CEO in February, and he stepped down from the board of directors in March.
In March, the Company reported a net loss of $379 million for the year or a loss per share of $8.09. It also recently disclosed that it is under investigation by the Securities and Exchange Commission.
In aftermarket trading, Babcock & Wilcox's shares were down over 37% from the close on April 10, 2018.
If you have held Babcock & Wilcox shares continuously before June 17, 2015, you may have standing to hold Babcock & Wilcox harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance to prevent future wrongdoing.
If you are a Babcock & Wilcox shareholder continuously holding shares before June 17, 2015, and are interested in learning more about your legal rights and remedies, please contact Jim Baker ([email protected]) at 619-814-4471. If you email, please include your phone number.
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Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]
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